Chancellor's Autumn Statement measures impact rental sector

A number of measures announced in the Autumn Statement affect landlords, the rental market and the wider property sector.

The Chancellor Jeremy Hunt has delivered his autumn statement speech outlining measures affecting all aspects of the nation's finances and the money and prospects for individuals across the country.

There are a number of policies affecting landlords, the rental market and the wider property sector.

The support provided through the benefits system to private renters through the Local Housing Allowance has been frozen since 2020. The allowance determines how much help people who rent privately get towards the cost through housing benefit or universal credit.

With the onset of the cost of living crisis, the cost of renting a property has soared, leaving many struggling to pay. With this in mind the Local Housing Allowance is to be increased next year to 30 percent of local market rents, a move that has been called for by numerous landlord and lettings agency groups.

The Chancellor says that this increase will help around 1.6m households currently renting in both the private and social housing sectors. It's the equivalent of some £800 per year per household receiving Local Housing Allowance.

The government-backed 95 per cent Mortgage Guarantee Scheme has now been extended until the end of June 2025, which is 18 months longer than previously agreed.

On property planning, there will be consultation on a change to Permitted Development Rights to allow any house to be converted into two flats, as long as there is no change to the external appearance of the property.

Households living close to new electricity infrastructure, including pylons and sub-stations will get up to £1,000 a year off energy bills for a decade.

New premium planning services means that from 2024 local authorities will be able to recover the full cost of large-scale planning applications in return for a guaranteed date for a planning decision - with fee refunds when these are not met.

The business rates 75 per cent relief for retail, hospitality and leisure sectors has been extended until 2025.

Do you have any questions about the autumn statement and what it means for you? Contact us and we'll try and answer any property or rental market related questions.