14:02 PM, 15th March 2023, About A week ago 10
The Chancellor of the Exchequer, Jeremy Hunt, let landlords sink or swim on their own with no direct assistance for landlords in his Budget announced today. Unlike £63 million of funds for swimming pools, but excluding the PM’s that required an upgrade for the local grid.
The good news is the Office for Budget Responsibility (OBR) is forecasting inflation to fall from 10.7% at the end of the last quarter to 2.9% by the end of 2023. This is faster than previously expected and reduces pressure on the Bank of England’s Monetary Policy Committee to continue raising interest rates beyond the next meeting on the 23rd of March.
However, the OBR is predicting the economy to retract by 0.2% over the course of 2023.
A dismayed Nick Sanderson, chief executive at Audley Group, said: “Another opportunity for housing reform has sailed on by.
“An innovative Chancellor would have used his time at the dispatch box to set out reforms that place as much emphasis on later living as first-time buyers.
“It was unrealistic to expect a stamp duty holiday in the current economic climate, but Jeremy Hunt should have considered stamp duty reform. In its current guise it’s a brake to the whole market, which in the long term costs the Treasury more.”
The tax-free allowance for pensions annually has gone from £40,000 to £60,000 and the lifetime allowance limit for pensions has been abolished.
Bradley Post, the chief executive of RIFT Tax Refunds, said: “The decision to abolish the lifetime allowance for pensions may seem like a generous offering from the government, but the reality is that it will only benefit a minute percentage of society who are already benefiting from huge pension cash pots.
“The average pension pot sits at around £180,000 to £190,000, so for the average person, today’s news is rather irrelevant.”
Tenants and landlords who are struggling financially may be pleased to hear that the Energy Price Guarantee will remain at £2,500 for the next three months.
Brian Murphy, the head of lending at Mortgage Advice Bureau, said: “While the extended freeze on the Energy Price Guarantee is welcome news for households struggling to keep up with energy costs, the past year has shown just how volatile and unpredictable these costs can be.
“Until the Government is prepared to take steps to guarantee they will be brought under control, we would all be wise to ensure that our homes are as energy efficient as possible to future-proof against another spiral of energy costs.”
Matthew Thompson, Chesterton’s head of sales, said: “The government’s extension of the energy bills support scheme presents a much needed financial aid for UK households.
“Many homeowners and tenants will, however, still face higher utility bills overall once the initiative is coming to an end in June.
“This can put a particular strain on larger households such as families but also the elderly who often reside in homes that have not yet been improved to benefit from a better EPC rating.”
The Chancellor also announced a £30m fund to increase support and housing for veterans – though there are now details what this will entail.
In response to the Budget, Labour leader Sir Keir Starmer said: “The more he pretends everything is fine, the more it shows how out of touch they are.”
This budget, he warned, “leaves us stuck in the waiting room with only a sticking plaster to hand”.
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Mark Alexander - Founder of Property118
14:10 PM, 15th March 2023, About A week ago
Landlords and Tenants alike should be fuming as a result of the Chancellor yet again doing nothing to improve the housing crisis created as a result of the policies of this Government.
Labour, if elected, will probably be worse, so it looks like people will yet again have a choice of the least worst when it comes to election time .
What a sorry state of affairs!
14:18 PM, 15th March 2023, About A week ago
An absolutely dismal budget pandering to a tiny fraction of the population or just downright unachievable.
Childcare can only happen if nurseries can recruit staff and make a profit.
People can only return to work if employers are willing to employ them.
Why exactly is Jeremy Hunt willing to listen to Martin Lewis and not business leaders or landlord associations?
What a missed opportunity and a very sad day for tenants.
14:27 PM, 15th March 2023, About A week ago
Should the tenants be celebrating he's not slapped more charges on Landlords, so at least there will be less increasing homeless this year than there already is going to be......
I disagree on the pension Lifetime allowance limit comment. These higher earners can bring a lot to the economy & do a lot of good if they now not penalised for doing well, so they pack up. This could be the difference in them working a bit more or not creating jobs, VAT, homes for others, surgery by Doctors etc.
14:28 PM, 15th March 2023, About A week ago
Reply to the comment left by Mark Alexander - Founder of Property118 at 15/03/2023 - 14:10
You say it perfectly Mark, Choice of the Least Worst.
15:04 PM, 15th March 2023, About A week ago
Housing mentioned 19 times
All were vague with no specifics for either PRS or SRS
Levelling up - Devolved to local authorities
Affordable housing 2021 spending review £24 Bn
Ambition to deliver 300,000 new homes - developers: sustainability "nutrient neutral sites"
Support for veterans
Landlord association, iHowz, disappointed Chancellor fails to announce any new support for housing
Budget restated 2021 commitment to affordable housing and "ambition" to deliver 300,000 new homes
No unfreezing of the LHA No removal of landlord tax surcharges No funding for retrofit energy and carbon works
Not even extra funding to get the courts working.
Removing the pensions cap and raising contribution limits are of little interest to most landlords, who are unable to shield their income through pension contributions beyond the cap of £3,600
This government can't even tell us what EPC/MEES requirements they want us to meet in 2025, two years after their consultation ended.
16:17 PM, 15th March 2023, About A week ago
I wonder if many Landlords, like me, are just relieved that there were no more punitive measures announced?
Of course I should prefer there to have been some positive outcomes, but I am now so sick and fed up of hearing bad news for landlords, week after week, that I was resigned to hearing more today! Not to receive any unpleasant news is almost a relief.
16:28 PM, 15th March 2023, About A week ago
I trust Sunak more than Hunt.
Sunak lied through his teeth about the WF, so what's Hunt glossing over that's in the Red Book????
19:23 PM, 15th March 2023, About A week ago
Reply to the comment left by Freda Blogs at 15/03/2023 - 16:17
Indeed I am. Every budget is a huge worry - what will they do this time?
I have friends and family all over the EU and lots of them are landlords too. Nobody is worried that their government (regardless the colour) will destroy them.
They are a part of infrastructure, not the enemies of the people.
21:26 PM, 15th March 2023, About A week ago
To be honest if he did anything positive towards LLs he would have been hammered by the Labour narrative on 'cost of renting' crisis (11 million voters) so too much of a risk and would have lost the attention on all the other measure he has made about family friendly child care stuff ( i.e. stolen Labour's clothes) to prepare for election late 2024.
I personally breathe a sigh of relief on no news on PRS is good news ( ie no alignment/ simplification of CGT to your tax band)
23:56 PM, 15th March 2023, About A week ago
Reply to the comment left by Freda Blogs at 15/03/2023 - 16:17
I quite agree, if you actually consider the raft of unreasonable and immoral measures against landlords then it would by any rational person be considered to be abuse.