In an eagerly awaited announcement on 22nd November, Chancellor Jeremy Hunt revealed a series of changes that will have a positive impact on various sectors of the Kent property market. While not revolutionary, these updates are set to benefit private renters, landlords, and first-time buyers.
The team at Quealy & Co, your expert estate agent in Sittingbourne, talk you through the main points you need to know about the recent Autumn Statement in this article.
Local Housing Allowance
One major change is the increase in the Local Housing Allowance (LHA). From next year, the LHA will cover the 30th percentile of local rental market rents. This adjustment, long advocated for by landlord and lettings agency groups, aims to assist around 1.6 million households in both private and social housing sectors. The impact is substantial, with each household receiving LHA seeing an annual increase of around £800, helping to cover rising rental costs.
95% Mortgage Guarantee Scheme
The government's commitment to supporting first-time buyers is also evident in the extension of the 95% Mortgage Guarantee Scheme. Originally set to expire earlier, the scheme will now continue until the end of June 2025, providing an additional 18 months of support. This extension is a strategic move to strengthen the property market and help those looking to take their first step on the property ladder.
Relaxed Planning Rules
The government also committed to relaxing planning rules and spending more money on building new homes, with £110 million to be invested in schemes which could support the building of 40,000 more homes.
In addition, there are proposed changes in planning regulations that could have a significant impact. The government is considering allowing the conversion of any house into two flats without altering the external appearance, through a shift in Permitted Development Rights. This potential change opens up exciting new opportunities for property development and offers more flexibility in housing options.
Cuts To National Insurance
Lastly, the decrease in national insurance contributions will provide a welcome boost to everyone's disposable income. This will have a small, yet positive, impact on buyers' affordability, which has been stretched due to recent increases in interest rates.
Cuts to employee National Insurance from 12% to 10% will save the average earner £450 per year. Reductions to National Insurance for the self-employed have also been announced, affecting an estimated 39% of landlords with five or more properties.
An Estate Agent You Can Trust
During times of instability in the property market, it’s important to work with an estate agent you can trust. Quealy & Co is your award winning, local estate in Sittingbourne. Peter Knight, Founder of Best Estate Agent Guide is quoted as saying "Winning a Best Estate Agent Guide four years running puts Quealy & Co in the top 1% of all estate agents in the UK - only 0.8% of over 15,000 estate agents achieved this."
We are experienced at marketing difficult markets when an estate agents’ skills are really required to market effectively, root out buyers and put sales together.
Call our team for a friendly chat about your property requirements, with no pressure from us to sell or let your home. When the time comes to move home, we will be with you every step of the way, aiming to take as much stress out of the moving process for you as possible.
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