Budget 2020 – predictions for the housing market
With the budget 2020 less than a week away, we look at the predictions for the housing market. Also, it will be the UK’s first Budget as a non-EU state in more than four decades. In addition to this, the latest warnings about the potential costs of coronavirus to the economy will also be included. However, could the initial predictions of ‘levelling up’ and ‘unleashing’ the UK economy be overshadowed by the coronavirus epidemic? It’s set to be a good year for the property industry with increasing market confidence and improved sales predicted for 2020.
Who is our new chancellor for the budget 2020?
The new Chancellor of the Exchequer is MP Rishi Sunak. Previously, Mr Sunak was appointed as chief secretary to the Treasury when Boris Johnson became prime minister. However just 6 months later he is about to deliver his first ever budget on March 11th, 2020. Mr Sunak is considered a rising star in the Conservatives. Although, there is a feeling of uncertainty as Mr Sunak takes the lead just weeks before delivering the budget 2020.
Key housing and letting topics for the budget 2020
Here are some of the key housing and letting topics thought to be announced in the budget 2020.
Landlord Income Tax Relief
The new rules are intended to level the tax playing field between homeowners and investors. This will be created by reducing the income tax relief that landlords can claim on their rental property. It will affect things such as mortgage interest and interest on loans to buy furnishings. It will also include fees incurred when taking out or repaying mortgages or loans.
Restrictions on lettings relief
Landlords who qualify for PRR may also be eligible for lettings relief. This will be on the CGT owed on a property previously lived in and has been let out as residential accommodation. In claiming lettings relief, landlords can get the lowest of the following. The same amount they received in PRR, up to £40,000 on disposal (£80,000 for couples). And, the chargeable gain made from letting out their home.
Lifetime Deposit Scheme
Also included in the Renters’ Reform Bill is a promise to introduce lifetime deposits for tenants. The new scheme is intended to improve the rental experience and affordability for tenants when moving to a new tenancy.
Housing
The ‘First Homes scheme’ might replace Help to Buy, which will end in 2023. This pledge is to give at least a 30% discount to first time buyers. Although it’s unclear whether the discount will apply to the private market, housing association properties, or council homes.
Coronavirus
It is thought that the Budget will ‘prioritise economic security’ in the face of the growing threat from the coronavirus. This could mean some major announcements are postponed to a future Budget or Autumn Statement.
In conclusion it seems the country will be looking to the new chancellor to deliver on his promises, but all will be revealed on March 11th.
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