Here's a quick synopsis of how the Chancellor's Autumn Statement today (5th December) will affect Landlord's in Norwich (with our thoughts in Bold next to each bullet point)
The overall economy is forecast to grow 2.4% in 2014. Good news.
Unemployment in Britain is expected to decrease further and the number of people claiming unemployment benefit in the U.K. has fallen 200K in the last 3 months. Unemployment is forecast to fall 7.1% by 2015. Again good news which should have a positive impact on levels of rent arrears.
We have the lowest proportion of work-less households in the U.K. for 17 years. More good news for rent arrears.
Borrowing is down - £111 billion to be borrowed this year and £96 billion for next year. Could this give rise to a tax cut as a sweetner before the next election?
Whitehall Departments are expected to under-spend by £7 billion next year.
Next April the state pension will rise by £2.95 per week making pensioners a little better off next year. Most people who bother voting are over 50, so politically this makes sense
Pension age to rise to 68 in the mid 2030's. Inevitable, 20 years ago the average time between drawing an OAP and Death was two years - now it can be 25 years or more. By 2030 the state pension system is likely to be a thing of the past. Buy investment property now to provide for your retirement.
New cap on total welfare budget next year.
30% of income tax is paid by 1% of tax payers!
Huge measures being introduced to tackle tax avoidance and evasion. Landlords should beware if they're evading tax - nothing wrong with avoiding tax providing its legal; that's just sensible tax planning
Private GCT allowance on private residences will be halved. Haven't seen the detail of this yet but potentially bad news for sellers of investment property. Landlords should review this carefully and tax plan accordingly - Property Partnerships may be a good option.
Non U.K. residents will pay CGT on UK property sales from 2015. Amazing that its taken until 2015 to close this loophole
"We have to build more homes" said Osborne. Agreed but Ed Balls "vision" of 200,00 new homes per annum is just not going to happen.
Residential house building to be stimulated with £1billion of funding. Good
Aldermore and Virgin to join the "Help to Buy Scheme". The help to buy scheme needs to be extended to BTLthats how the Government would stimulate house building on the scale required.
The Bank of England to be given the responsibility and measures to deal with "asset bubbles". The Government believes that the property market is not over-heating. Good, we need a long period of stability with gentle property price increases over a sustained period. Boom and bust hurts everyone.
The Bank of England will endeavour to keep interest rates "lower for longer".
For the next two years, every retail premises in England will a rateable value up to £50,000 will get £1,000 discount off their rates.
Council tax will be frozen.
Families will be helped with Energy Bills. Some levies to be removed to reduce energy bills.
Next year's fuel duty rise will be cancelled. Fuel prices will be frozen.
No removal of mortgage interest relief for buy to let borrowers, as had been forecast. Phew! BTL is a business and mortgage interest is a genuine, valid, business expense so it would have been nonsensical to have penalised a certain section of the business community.