How Does The 2016 Budget Announcement Affect Leeds Residents?
New measures announced by George Osbourne, Chancellor of the Exchequer, in the 2016 Budget will fund increased house building, protect homes from flooding and impact on the private rented sector. Leeds is set to benefit from more funding to protect homes and businesses from flooding. The £700m boost will fund new defences in Leeds, amongst other flood-hit areas, and the maintenance of existing defences, paid for by increased Insurance Premium Tax which goes up by 0.5 per cent. Changes to Capital Gains Tax (CGT), a tax on the gain you make when you sell something, will put Britain amongst the lowest CGT rates in Europe but will not benefit those investing in residential property, who will still be taxed at current rates. The initiative intends to incentivise investing in companies over property and will see the basic rate of CGT fall from 18% to 10% from April. It is expected that this will free up the housing market and see increased supply from people selling their second homes and buy-to-let properties. This is good news for those looking to buy in Leeds, particularly with demand for property expected to increase with the announcement that a £60 million investment in the HS3 rail link between Leeds and Manchester will reduce journey times to around 30 minutes between Leeds and Manchester, as well as improving transport connections between other cities in the north. Osbourne also announced that the proposed 3% increase in Stamp Duty on buy-to-let property and second homes will definitely come into effect from 1st April and will also apply to larger investors as well as private landlord investors. This is expected to impact on the private rented sector as build to rent developments become a less attractive investment. Instead, the money raised through Stamp Duty surcharges will fund community building projects. It is hoped these initiatives will stimulate the housing market and see an increased supply of housing and opportunities for first time buyers to get a foot on the ladder. If you’re looking to buy or rent in Leeds and want to discuss the opportunities available to you, come speak to one of our Sales Team who would be happy to advise you on what these changes mean for you.
Published on: 26 Aug 2021