What Does The Spring Statement Mean For Landlords & Tenants?
With rising inflation, this Spring Statement from the Chancellor, Rishi Sunak, was eagerly awaited. However, it received mixed reviews, especially between landlords and tenants. So, what can landlords and tenants expect from the Spring Statement?
Impact On Landlords
- Increase in capital value
House prices have increased, which means the capital value for landlords is improved. In 2021, house prices across England saw a 14% increase.
- No increase in stamp duty
While the government are trying to crack down on buy-to-let properties to improve home-ownership, they have resisted increasing the stamp duty surcharge for additional homes. The rate remains at 3%. Previously, the government had considered increasing this rate to 4%.
- Increase in NI allowance
Some landlords may benefit from the increase in the National Insurance threshold. This threshold is now £12,750. For some people, this could provide around £330 more per year.
Impact On Tenants
- Rents may increase
Rental properties are in demand, which means landlords may increase their prices. What’s more, landlords may also be facing the squeeze of rising energy costs and inflation which may mean they feel they have no option but to increase their prices. Alternatively, landlords may understand the difficulty tenants face during the cost of living crisis and may offer to freeze rents to support tenants.
- Household Support Fund
In the Spring Statement, the Chancellor has added £500 million to the Household Support Fund that low-income people can apply for. Applications for access to this fund will vary between councils, so if you’re looking for support, speak to your local council or Citizen’s Advice.
- Limited rental reforms
During the pandemic, legislation was on the side of tenants. However, after the pandemic, landlords are now able to use Section 21 evictions. For tenants, this can mean a level of insecurity. However, we can expect the government to create rental reforms in the coming statements with changes such as the end of Section 21 evictions, creating minimum standards for private rentals and developing a national landlord register too.
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