In the recent Autumn Statement, Chancellor Jeremy Hunt outlined pivotal changes that will reverberate across the rental market and the wider property industry. One significant adjustment is the planned increase in the Local Housing Allowance (LHA) to the 30th percentile of local market rents, a measure that has been actively advocated for by various landlord and lettings agency groups.
This move is anticipated to have a substantial impact, benefiting approximately 1.6 million households currently engaged in both private and social housing sectors. The adjustment translates to an estimated £800 per year for each household receiving LHA, demonstrating a concerted effort to address housing affordability and support households in need.
In a significant move, the government has decided to extend the 95% Mortgage Guarantee Scheme, originally set to expire, until the end of June 2025. This extension, now spanning an additional 18 months, aims to continue supporting aspiring homeowners by facilitating more accessible mortgage options.
Furthermore, there are plans for consultations on potential changes to Permitted Development Rights. The proposed alteration would enable the conversion of any house into two flats, provided there is no discernible change to the external appearance. This potential adjustment seeks to streamline housing development processes and foster increased flexibility in property usage.
Addressing energy-related concerns, households located in close proximity to new electricity infrastructure, such as pylons and sub-stations, are in line to receive substantial benefits. The proposed incentive offers a noteworthy reduction of up to £1,000 per year on energy bills for eligible households. This strategic approach not only supports the integration of new infrastructure but also aims to alleviate the financial burden on residents affected by such developments. These initiatives collectively underscore the government’s commitment to addressing housing challenges, promoting sustainable development, and providing tangible support across diverse sectors.
Furthermore, Chancellor Jeremy Hunt has announced that starting from 2024, local authorities will have the capability to recoup the entire expense associated with substantial planning applications. This change comes with the condition of securing a guaranteed date for a decision on the planning proposal, aiming to streamline and expedite the planning process for large-scale developments.
In addition to this, the extension of the 75% business rates relief for the retail, hospitality, and leisure sectors until 2025 has been confirmed. This measure seeks to continue providing crucial financial support to businesses within these sectors, acknowledging the ongoing challenges they face and offering a prolonged period of relief to aid in their recovery.
Additional measures unveiled today encompass:
– A reduction in Employee National Insurance by 2.0%, setting it at 10%, providing relief for 27 million employees and resulting in an average annual savings of £450. This adjustment is scheduled to take effect from January 6, 2024.
– The elimination of Class 2 National Insurance payments for self-employed individuals, amounting to an annual savings of £192 for the average self-employed person. Furthermore, there will be a reduction in Class 4 National Insurance for the self-employed, dropping from 9.0% to 8.0% starting in April, resulting in a £150 annual saving for each self-employed individual.
– An increase in Universal Credit and other benefits by 6.7% from April, aiming to provide enhanced financial support to individuals dependent on these benefits.
– Anticipated reduction of core inflation to 2.8% in 2024, reaching the official 2.0% target in 2025, indicating a slower decline than previously projected.
– A freeze on all alcohol duties until August 2024, aiming to provide stability in the pricing of alcoholic beverages for consumers and businesses alike.
– Commitment to honoring the triple lock in pension payments, resulting in an 8.5% increase in state pensions scheduled for April.
– Implementation of a reduced business tax burden by up to 25%, achieved by making the ‘Full Expensing’ initiative permanent for large companies investing in the UK.
– Allocation of £4.5 billion over the next five years to strategically significant industry sectors, with a focus on green technology and pharmaceuticals, aiming to foster growth and innovation in these key areas.
– Allocation of £50 million over the next two years to pilot initiatives aimed at boosting apprenticeships in key sectors, emphasizing the importance of vocational training.
– Dedication of £500 million towards the development of AI and supercomputer innovation, reflecting a commitment to advancing technological capabilities.
– Broadened investment in Freeports and Investment Zones, with additional zones planned for Wales, the Midlands, and Greater Manchester, demonstrating a strategic approach to regional economic development.
– Proposed reforms for long-term sickness benefits to incentivize job-seeking and facilitate remote work, with mandatory work placements introduced after 18 months in specific cases.
– Announcement of a 9.8% increase in the National Minimum Wage, elevating it to £11.44 per hour, aimed at improving the financial well-being of low-wage workers.
– Allocation of £7 million to organizations addressing anti-Semitism in schools and universities, highlighting a commitment to fostering inclusive and tolerant educational environments.
* Remember – the Chancellor’s speech is only part of the Autumn Statement. The substantial details published in writing afterwards often reveal important changes which are only unravelled in the coming days *
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