Autumn Statement & The Property Market

Phillip Hammond’s second budget as chancellor in his inaugural Autumn Budget has been delivered on Wednesday, November 22nd. We look at the Autumn Statement and how it affects The Property Market. In a bold move, Chancellor Philip Hammond has abolished stamp duty for most first-time buyers in England and Wales in his Budget. The change, effective immediately, will apply to the first £300,000 of a home’s value, saving first-time buyers £5,000. Housing was very much at the heart of the of the British Government’s spending plans.

Autumn Statement & The Property Market Summary

Below is a summary of the key points from Hammond’s Autumn Statement in regards to the Property Market

  • Stamp duty will be abolished immediately for first-time buyers purchasing properties worth up to £300,000
  • To help those in London and other expensive areas, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, with the remaining £200,000 incurring 5%.
  • 95% of all first-time buyers will benefit, with 80% not paying stamp duty
  • Reduction will apply immediately in England, Wales and Northern Ireland although the Welsh government will have to decide whether to continue it when stamp duty is devolved in April 2018
  • It will not apply in Scotland unless Scottish government decides to follow suit
  • £44bn in overall government support for housing to meet target of building 300,000 new homes a year by the middle of the next decade
  • Councils given powers to charge 100% council tax premium on empty properties
  • Compulsory purchase of land banked by developers for financial reasons
  • £400m to regenerate housing estates and £1.1bn to unlock strategic sites for development
  • New Review process, to look into delayed planning applications.
  • Bulk of new homes to be high density developments in city centers near transport hubs.

House Prices Expected to Rise 0.3% as a result of the changes

The Office for Budget Responsibility (OBR) said that this would directly benefit existing homeowners, instead of benefiting the intended first-time buyer market; because it expects all house prices to rise by 0.3% as a result of the change. However, the chancellor insisted that young people will benefit. “This is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again,” Mr Hammond said.

Personal taxation and wages

Furthermore, the Tax-free personal allowance on income tax to rise to £11,850 in April 2018. Additionally, the higher-rate tax threshold to increase to £46,350

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