One of the biggest headlines from this budget was that stamp duty would be abolished for first-time buyers, but how does Chancellor Philip Hammond’s much-awaited budget affect landlords?
Chancellor Wants to Kickstart the Housing Market
Unlike previous budgets, Philip Hammond hasn’t made landlords the target of his big cannons. Instead, the Chancellor has decided to focus on repairing the ailing property market by making it easier for first-time buyers to get a foot on the ladder.
Cut in Stamp Duty for First-Time Buyers
The immediate cut in stamp duty should make it easier for first-time buyers to afford a property, although it won’t help them save up a 20% deposit, which is often the biggest barrier to homeownership.
No More Council Tax Relief for Empty Properties
Mr Hammond has given local councils the authority to charge 100% council tax for empty properties, to dissuade investors from snapping up homes and leaving them empty indefinitely. However, most experts believe this will do little to deter overseas investors from buying up real estate in prime areas.
Indexation Tax Relief to be Abolished from 2018
One area of this budget that will hit landlords with limited companies is the freezing of indexation relief. Previously, incorporated landlords could gain tax relief on properties owned for many years, but this is being frozen from next year. Many experts believe the move is paving the way for indexation tax relief to be abolished altogether. As such, landlords should plan accordingly.
