How the government’s autumn statement affects the rental sector

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How the government’s autumn statement affects the rental sector Posted On 28 November 2023

Jeremy Hunt’s autumn statement was released on 22^nd November, outlining many plans and new legislation for the year ahead

Many points of this statement will affect landlords and tenants alike in positive ways, making 2024 a good year for the rental sector. Here are three key ways the autumn statement will benefit the renters and landlords of the UK during the upcoming year and beyond.

Increase to the Local Housing Allowance

The government predicts that approximately 1.6 million households in 2024 will benefit from an average of £800 in support, as a result of the Local Housing Allowance being extended to cover 30% of local market rents.

In light of the Allowance having been put on hold since 2020, this extension aims to reform the serious and ongoing problem of rental property affordability, with rent payments often accounting for more than half of the overall living costs of private renters on the lowest incomes. Therefore, this extension will be a welcome change for tenants in particular, but also alleviate some strains on landlords too.

National Insurance cuts for self-employed workers

Self-employed people, which includes many landlords, will soon benefit from tax cuts, including the abolishment of Class 2 National Insurance for those earning more than £12,570 a year, and a 1% cut on Class 4 National Insurance. This change is expected to benefit around two million self-employed people, who will no longer need to pay a £3.45 weekly fee, thus saving around £192 per year.

Permitted conversion development rights

Set to be implemented at some point next year, the government will soon begin consultation on newly permitted development rights. Providing the exterior of the property remains unchanged, this new legislation will allow any home to be converted into two flats, which proves promising for many prospective buy-to-let landlords.

#property #autumnstatement #landlords