UK Chancellor Rishi Sunak’s autumn budget was focused on rebuilding and developing. In the autumn budget, Rishi Sunak announced that the OBR (Office for Budget Responsibility) expects the consumer price indeed to reach 4.4 per cent in 2022 while the gross domestic product was expected to grow by 6.5 per cent. Various issues were addressed in the autumn budget; such as the increase in the national living wage, reduction in air passenger duty, change in business rates as well as an announcement of £500 million to support certain vulnerable households. There were quite a few announcements that were made that will impact homeowners, tenants, landlords as well as estate agents in the UK. If you are a landlord or an estate agent in the UK, here is how the new autumn budget will impact you.
Grants for replacing gas boilers and heat pumps for landlords
Replacing gas boilers and heat pumps can be a pretty hefty expense. In fact, many landlords would rather sell their rental property and invest in a replacement, as opposed to paying hefty bills for faulty gas boilers and heat pumps. But, before you decide to find the rental value of your property, consider using a grant to make replacements! As of April 2022, the government will provide grants up to £5,000 in order to help landlords replace gas boilers and heat pumps. In the long run, the government plans to replace these heat pumps and gas boilers with heat pumps to bring down carbon emissions.
A Covid-19 debt fund to help tenants and landlords
The aim of this debt fund is to support tenants and landlords who might have suffered financially due to the Covid-19 pandemic and to boost the property market as a whole. The Department for Levelling Up, Housing and Communities have created a debt fund with £65m to assist 1.4 million households who are late with their council tax payments and payments to their gas and electricity suppliers. This debt fund will also help around 950,000 low-income households who are behind on their rent payment. Essentially, the Covid-19 debt fund has been introduced to reduce homelessness and help out tenants and landlords, who might be in need.
An influx of £24 billion in the housing market
The UK government aims to complete housing projects as well as property-related projects worth £24 billion. Out of this £24 billion, £11.5 billion is supposed to be used towards developing affordable housing. 65 per cent of the affordable housing is to be made outside London, whereas the remaining 35 per cent will be in and around London itself. This is great news for estate agents as they will be able to increase their portfolio and attract many new potential buyers. The government plans to use £10 billion in the housing market which will lead to the building of a million homes – a big win for the real estate sector as a whole.
Building houses on brownfield land
Basically, brownfield land is previously developed land that is considered contaminated. In the autumn budget, the UK government decided that they will work towards regenerating brownfield land. About £1.8 billion has been set aside to build 160,000 residential properties on brownfield land. Again, this is great news for estate agents, tenants, potential buyers and landlords.
Apart from this, there have been quite a few other things that have been taken up in the autumn budget. While not every change will make the headlines, it is important to understand the whole autumn budget so that you can see if your business, finances or taxes have been impacted in any manner. It is always a good idea to get in touch with a financial expert to discuss certain matters, especially when it comes to your taxes.
For landlords and estate agents, the autumn budget has been pretty promising. With new housing projects in the pipeline and an influx of funding in the housing sector, both estate agents and landlords are bound to flourish. For landlords, upcoming residential projects and new properties mean a chance to increase their portfolio and climb the property ladder. For estate agents, this focus on residential projects and housing developments means a higher number of potential buyers, which in turn means a higher number of potential clients. At the end of the day, it seems like a win-win situation for the property market.
In essence, the UK autumn budget for 2021 is pretty positive, especially for the property sector. Since the budget aims at rebuilding the economy, rebuilding the property market and creating affordable housing in the future while supporting development, it will be beneficial for landlords, tenants, homeowners and estate agents alike. By investing in the housing sector, the UK government aims to boost the economy as a whole, which has proven to be a successful measure in the past.