Chancellor announces longer tenancies probe
Landlords and renters alike will have been watching the Budget closely yesterday (November 22nd) for signs of significant measures that could affect their situations, and several measures may indeed do that.
Chancellor of the exchequer Philip Hammond said the government is keen to tackle issues like homelessness and the desire of younger people to get on the housing ladder, but he also mentioned renting.
He said: "We will also launch a consultation on barriers to longer tenancies in the private rented sector, and how we might encourage landlords to offer them to those tenants who want the extra security."
Many landlords will no doubt wish to be involved in the consultation and will have their own suggestions to make, with the possibility that new legislation and possible tax incentives could be involved in efforts to promote longer tenancies.
The tenancy probe is not the only way in which landlords and renters might be affected by the Budget.
In particular, many of those who rent are young people who would prefer to own their own homes. Mr Hammond noted that among 25-34 year-olds, the proportion owning a property has dropped from 59 per cent to 38 per cent in the last 13 years.
His response was to announce an exemption from stamp duty for first-time buyers on homes outside London of up to £300,000. For London properties priced up to £500,000, the first £300,000 will attract no stamp duty and the other £200,000 five per cent.
Mr Hammond remarked: "We send a message to the next generation that getting on the housing ladder is not just a dream of your parents' past, but a reality for your future."