Chancellor Jeremy Hunt has used his Autumn Statement to announce new measures that will affect the rental market and property industry.
Photo: Krisztina Papp - Unsplash
Key announcements for the property sector include:
- Local Housing Allowance: LHA is due to be increased to the 30th percentile of local market rents in 2024. This is equivalent to £800 per year, per household receiving LHA. Hunt says that this will help the 1.6m households currently renting in private and social housing sectors. Universal Credit will also rise by 6.7% from April 2024.
- Mortgage Guarantee Scheme: The government funded 95% Mortgage Guarantee Scheme has been extended until the end of June 2025, 18 months longer that the previously agreed date.
- Permitted Development Rights: There will be a consultation on a change to Permitted Development Rights to allow any house to be converted into two flats, on the condition that there are no changes made to the external appearance.
- Electricity Infrastructure: Households located close to new electricity infrastructure (pylons and sub-stations) will receive up to £1,000 per year off their energy bills.
- Faster Planning Applications: Hunt announced that from 2024, local authorities will be able to recover the full cost of major business planning applications, in return for a guaranteed date for a planning decision. If they fail, theses fees will be refunded automatically and the application processed free of charge.
- Business Rates: 75% relief on business rates over £110,000 for retail, hospitality and leisure businesses has been extended until 2025. This will save the average independent shop over £20,000.
- Minimum Wage Rise: The National Living Wage will rise from £10.42 to £11.44 per hour in April next year. This is a rise of 9.8% and worth up to £1,800 for a full-time worker.