Those hoping for stamp duty reform to be a main feature of the new Chancellor’s Autumn Statement have been left disappointed.
Despite loud voices in the industry calling for stamp duty hikes to be either amended or abolished, the Chancellor made no reference to stamp duty at all. There is to be no change to the 3% stamp duty surcharge and no move to lower the stamp duty rates on properties priced over £1.5 million.
Stamp duty rises have been blamed for slowing the housing market, especially the top end of the London market. A fall in prices and sales at the top end of the market has led to a lack of supply in the middle of the market. Kensington, in particular, has been hard hit by stamp duty rises.
In a further blow to landlords, a ban on letting agents’ fees for tenants will come into effect ‘as soon as possible’, passing the cost onto landlords. This measure is designed to help renters and will prove politically popular with renters, but there is already speculation that this extra costs will still end up being paid for by tenants through higher rents.
The ‘housing challenge’ proved to be the focus of the Chancellor’s speech. In response to the ‘challenge’, £1.4 billion has been earmarked to build 40,000 new affordable homes. London will get a big injection of capital, receiving £3.15 billion to build 90,000 affordable homes, while a £2.3 billion Housing Infrastructure Fund is being set up to provide 100,000 new homes in areas where there is high demand.
On another note, Corporation Tax is to fall to 17% by April 2020, and this, along with the weakening of the pound, may attract more foreign investment, especially in prime central London areas like Westminster.
