George Osborne’s 2016 Budget aims to encourage solid, steady growth. He has made a particular effort to appeal to small businesses and the self-employed.

Here is a round-up of the announcements made about the property sector:

• Boost housing by speeding up planning and zoning.
• The additional levy of 3% on SDLT for those buying additional properties in the UK was confirmed, with larger property investors also included in these new charges.
• Life Time ISAs will be introduced to help those under 40 years old save for a deposit for a property or for their pension. For every £4 saved, the Government will match it with £1 – giving those with these accounts a 25% bonus on their savings. People will be able to save up to £4000 per year up until the age of 50.
• £1,000 tax free allowance for those who make money from online trading and letting their property-eg, letting your home whilst on you are on holiday.
• Commercial property stamp duty changes include 0% up to £150,000, 2% up to £250,000 and 5% top rate above £250,000. There will be measures to help those who have exchanged but not completed by the time this measure comes in at midnight tonight. Buyers of commercial property up to £1.05m will pay less in stamp duty.
• Feel-good factors that might lead to increased spending include an increase in business rate relief from £6,000 to £15,000 from April next year (higher rate from £18,000 to £51,000). The abolition of Class 2 national Insurance will be welcomed by the self-employed. The tax-free personal allowance will rise from next year.
• Improved infrastructure projects will increase commutable distances and property prices should ripple up accordingly. Freezing fuel duty will also help commuters and businesses.

More Strabane Property Centre Estate & Letting Agents Blog after Easter.

 

Ed Richardson