Keep up to date with the latest RH & RW Clutton news
Thu 28 October 2021
There appears to be some good news for the UK economy and the property industry in the Autumn Spending Review and Budget 2021. Although there is an overall feeling that some very important areas, particularly in the private-rented sector, have been overlooked.
Help for tenants struggling with rent arrears
A further £65 million will be made available to local authorities to help vulnerable and low-income tenants struggling with rent arrears who are at risk of losing their homes. This follows the existing funding the Government has provided to support renters including the Homelessness Prevention Grant, Discretionary Housing Payments and a Household Support Fund to help with essentials, like heating and food.
Local Housing Allowance (LHA), Universal Credit and Minimum Wage
Work allowances are to be increased by £500 and Minimum Wage is set to increase to £9.50 per hour. Although LHA will remain at the existing 2020/21 level and the taper rate for UC is to be reduced.
With an estimated 62,000 outstanding possession hearings in England and Wales, there was no comment on the proposed review of the court system.
There was no announcement on the Green Homes Grant replacement scheme. The proposed scheme was to make funding available to landlords for energy improvements to private-rented properties. There is however a new Heat & Buildings strategy, which sets out the Government’s plan to cut carbon emissions in workplaces and homes.
Investment to build affordable homes
£11.5 billion is to be invested to build new affordable homes and £1.8 billion for developing Brownfield land. It is hoped that this will help ease the pressure placed on the private rented sector owing to a current lack of and increasing demand for social housing.
Tax for property developers and funds for unsafe cladding removal
Alongside the Government’s £5 billion fund to remove unsafe cladding from high-risk buildings
, a new tax will be imposed on property developers with profits of over £25 million to contribute.
Extension to Capital Gains Tax deadline
The deadline for UK and non-UK residents to pay their CGT after selling their UK residential property has increased from 30 days after a sale completes, to 60 days. When mixed-use property is sold by UK residents, legislation will clarify that the 60-day window will only apply to the residential element of the property.
The Budget did not include any reference to UK Stamp Duty Land Tax (SDLT).
The Bank Corporation Tax Surcharge will be set at 3% from April 2023. This is to ensure that banks continue to pay a higher rate than other companies and the annual allowance within the surcharge to £100 million will also be increased.
Further information from the Autumn Spending Review and Budget 2021 can be found in the supporting and related documents.