The Autumn Statement from Jeremy Hunt has now been released, let’s take a look at the areas that will affect the housing market. From changes to housing allowance, to the impact on self-employed individuals, there are various factors that will shape the market dynamics going forward.

Local Housing Allowance

It has been agreed that Local Housing Allowance will be increased next year to the 30th percentile of local market rents.  Numerous campaigns by landlords and letting agencies have pushed this into place, which will provide entitlements for tenants renting private-sector accommodation on lower incomes, influencing rent affordability and market demand.

Self-Employed Landlord?

If you are a self-employed landlord, you will no longer have to pay the current compulsory charge of £3.45 per week for National Insurance.

Buyers Market

Changes do mean that overall house prices will be 7.6% lower in the 4th quarter. This might create opportunities for homeowners and investors as affordability improves..

Homebuilding Industry

The Government has now committed to spending more money on building new homes, which will positively impact local economies and start to address the demand-supply gap. The commitment aims to provide more affordable housing options for Scottish residents.

Tax Break

The ‘full expensing’ permanent for firms had been due to expire in 2026, this has now been extended, allowing companies to offset investment in machinery and equipment against their tax bills. This proposed reduction will reduce the tax payable by 25p for every £1 spent on machinery/equipment. Revisions in tax regulations can also influence property investment strategies and financial planning.

The 95% Mortgage Guarantee Scheme

Great news that this Scheme has also been extended until the end of June 2025 (18 months longer than previously advised). Whilst we know that Scotland has fewer lenders to choose from, there are still around 40 lenders that will lend to buyers in Scotland. This Scheme reduces the deposit requirement for buyers and stimulates the property market to encourage more first-time buyers being able to access mortgage financing.

Permitted Development Rights

There is going to be a consultation change to allow any house to be converted into two flats, so long as there is not a change to the external appearance of the property. This change will most definitely help property developers.

Electricity Infrastructure

Properties that are located close to pylons and substations will now receive £1,000 credit per year, towards their energy bills.

Planning Decisions

Starting in 2024, local authorities will be able to recoup the monies for the costs of large scale planning applications, as long as they provide a guaranteed date for a planning decision.

Wage Rises

National Living Wage will increase from £10.42 per hour to £11.44 per hour for anyone 21 years old and over, this increase will benefit more than 2.7 million people, which could have a direct impact on tenant affordability, further supported by the National Insurance cut, and Universal Credit increases.

Business Rates

Announcement of a business rates support package that will be worth around £4.3 billion (over the next 5 year period) available to support small businesses and the high street.