The recent budget had a heavy focus on housing, with most changes affecting social and private landlords.
Social housing rents will fall by 1% for four years, as social landlords are forced to reduce rents. George Osbourne has attacked the “staggering” rises in the social housing sector, and the new reduction will take effect in April 2016, applying to both ‘social rent’ and ‘affordable rent’ tenants. The policy could lead to thousands fewer homes being built, according to the Office for Budget Responsibility and housing associations.
Housing benefit for 18-21 year olds will be scrapped as of April 2017, though exceptions will be made for vulnerable young people unable to live at home and those in work six months prior to making a claim.
Social housing tenants who earn more the £30,000 will have their rents increased to full market rates (though this figure is £40,000 for tenants in London).
The threshold for inheritance tax has been raised to £1m, saving many family homes from the tax.
The allowance for wear and tear in rental properties will be tightened. Instead of being able to take 10% of the rent from profits to account for wear and tear (even without improvement to the property) Landlords will now have to prove that they have maintained or improved their rental property before being able to deduct the cost from their taxed profits.
Whether you’re a prospective landlord, tenant or buyer in the Devon area, Autograph Estate Agents are here to help. Please don’t hesitate to get in contact.