Estate agent Plaza Estates looks at what the 2017 Spring Budget means for buyers and buy-to-let investors in central London.
Buyers and investors in central London hoping for stamp duty reform have been dealt a blow as Chancellor Philip Hammond failed to mention stamp duty in the Spring Budget.
In a general blow to the property industry, the housing market was not mentioned at all, while the Chancellor provided no follow-up to the recently published Housing White Paper.
The industry was loud in its calls for stamp duty reform in the run up to the Spring Budget, with many asking for a reversal of the 3% surcharge and a change to the rate of stamp duty for high-end properties. It has also been suggested that stamp duty tax should be paid by vendors and not buyers to ease affordability issues for many buyers.
Likewise, the Chancellor made no mention of the proposed ban on letting agents' fees for tenants, nor the changes to mortgage interest tax relief, due to be phased in from April 2017.
However, relief was offered for small businesses about to be hit by, in some cases, dramatic rate rises. The business rates revaluations has been a controversial issue, and an issue which particularly affects businesses in parts of the capital, including central London and the West End.
In offering much-needed relief for businesses, the Chancellor committed an emergency package of £435million, and a £300million fund to be distributed to local councils to allow them to support businesses struggling to pay their higher bills. In addition, any businesses losing small business tax relief will have rate increases capped at £50 per month.
Elsewhere in the Budget, the Chancellor announced a delay to the start of the Making Tax Digital for business programme, which the National Landlords Association considers positive for landlords.
To read more about the Spring Budget, click the link below: