Jackson-Stops & Staff comments on the Autumn Statement     

Nick Leeming, Chairman at Jackson-Stops & Staff, comments on last week’s Autumn Statement in relation to the property market: “The latest Autumn Statement was good news for the new homes sector, with the Government showing that they are now prioritising housing for those who need it most with huge funding boosts given to support the building of more new homes.

“The statement didn’t go far enough, however, and it was disappointing that there was no reform to stamp duty, despite industrywide concerns, with our recent research showing a 14% reduction in housing transactions year on year and a £400 million shortfall in stamp duty revenue from residential property transactions against predicted revenue this financial year. A cut in current prohibitive stamp duty levels would get the market moving at all levels and give welcome relief to first-time buyers, who are having to grapple with a multitude of costs including saving for a deposit. This reform would have resulted in a chain reaction up the housing ladder, spurring current home owners to take their next step and freeing up housing suitable for first-time buyers and second steppers.

“While the announcement of the abolishment of lettings fees appears to be good news for renters, experience shows that any savings to the tenant will likely be passed on to the landlord who in turn could then pass them back on to the tenant through increased rent as they seek to cover their costs. This legislation is short-sighted and is yet a further challenge to landlords who have faced a barrage of increased costs over recent months, including the additional 3% SDLT levied when they purchase a rental property and also the abolishment of mortgage interest rate relief which is set to commence in April next year.

“Although the ban on lettings fees still requires a Government consultation before it is implemented, its impact on the UK housing market could be far reaching. Affordability issues which surround purchasing homes mean that for many, the only option is to rent. We’ve seen a consistent reduction in the number of landlords buying investment properties since April this year which means that fewer rental properties are now coming on to the market to serve the growing rental population. A better solution would have been to create a more competitive fee environment and ensuring that landlords are not further discouraged from the market.”

Nick concluded: “We look forward to seeing further measures announced in the upcoming Housing White Paper in a few weeks’ time.”