The Budget came and went with little impact for the buy to let investment sector, raising taxes for the self employed but failing to mention housing issues.
For many, the 2017 Budget was seen as the last chance for the Chancellor to reverse the imminent changes to mortgage tax relief for landlords, set to be cut next month. However, no such escape was granted, and landlords will soon be forced to pay tax on their full profit.
Chief executive of Hunters Property, Glynis Frew, said: ‘The market has already seen a substantial hit from the second home stamp duty levy and this further strain on landlords will undoubtedly adversely affect the property market. This could mean landlords opting to come out of the private rented sector, creating reduced supply or increased costs which could again mean an increase in rents. The more average rents rise, the more ownership figures fall. This is a bad decision which will affect not only landlords but renters, first time buyers and second steppers.’
However, it was not only landlords who were neglected in the Budget, dubbed a ‘damp squib’ by Andrew Montlake, director of Coreco. Rumours had been voiced that council tax and stamp duty could be replaced with an annual property based tax. However, the housing sector did not receive a mention.
Instead, the Chancellor pledged to invest £216 million in existing schools, and fund 110 new ones. An extra £2 billion was also promised to social care over the next three years, with £1 billion in 2017-18.
He also asserted that ‘tough financial penalties’ would be introduced for professionals enabling tax avoidance which is later stopped by HMRC.