The Autumn Statement: A put down for aspiring landlords? – Chancellor George Osborne has delivered his Autumn Statement – and as intended, he sprang a number of surprises :-
No big surprises here – Osborne confirmed the introduction of a new flat-rate state pension and a small rise in the current state pension. In summary:
- The state pension age will rise
- The state pension will rise to £119.30 a week from April 2016
- The new flat-rate state pension of £155.65 a week will come in from April 2016 – but new pensioners will no longer be eligible for the additional state pension
The current additional state pension, which is earnings-related, is being abolished for those who reach state pension age on or after April 2016. The new flat-rate of £155.65 per week may leave some pensioners better off than they would otherwise have been, but many may find themselves receiving less overall. Those currently receiving their state pension will not see any change, except for the rise of £3.35 per week.
It’s a good time to be a first-time buyer, but a bad time to be a landlord. Here are the property highlights:
- The Help-to-buy ISA will launch on 1 December – savers will receive a 25% government bonus, up to £3000, on top of their own savings.
- On top of this, there will be a new London help-to-buy scheme, offering buyers with a 5% deposit a loan of up to 40% of the value of new build homes, interest-free for 5 years.
- Bad news for landlords: a new surcharge of 3% will be added to stamp duty on buy-to-let properties and second/subsequent homes from 1 April 2016
- More good news though for first-time buyers: building new homes is high on the Chancellor’s list of priorities.
- The much-criticised tax credit cuts have been scrapped
- Everyone will have a digital tax account by the end of Parliament
A Man of Ambition :
What motivated the raising of stamp duty for purchasers of buy to let properties?
With the majority of working class and middle class aspiring to buy a second home and with some people doing very well from investing in the buy to let market, the motivation surely is a class led sneer at the aspirational classes. Which hopefully will come back to haunt this Chancellor.