What Chancellor Hunt's Autumn Statement means for Yorkshire
The Chancellor Jeremy Hunt made a series of changes in his Autumn Statement, announced on Wednesday, which are poised to benefit various sectors of the Yorkshire property market. These changes, while not revolutionary, have a significant impact and offer promising prospects for private renters, landlords, and first-time buyers.
One notable update is the increase in the Local Housing Allowance (LHA), set to cover the 30th percentile of local rental market rents next year. This long-awaited adjustment, advocated for by landlord and lettings agency groups, aims to assist approximately 1.6 million households across both private and social housing sectors.
The impact of this change is substantial, resulting in an annual coverage of around £800 per household receiving LHA. Consequently, a considerable portion of the recent uplift in rental market rents will now be accounted for.
Further highlighting the government's commitment to supporting first-time buyers, the extension of the 95% Mortgage Guarantee Scheme until the end of June 2025 is a strategic move aimed at bolstering the property market and assisting those stepping onto the property ladder. This 18-month extension provides much-needed support.
Moreover, proposed changes in planning regulations present an intriguing possibility. The government is contemplating a shift in Permitted Development Rights, allowing the conversion of any house into two flats without altering the external appearance. This potential change opens up new avenues for property development and utilisation, providing greater flexibility in housing options.
Lastly, the decrease in national insurance contributions positively impacts disposable income for everyone, making a small but meaningful contribution to buyers' affordability, particularly considering the recent increases in interest rates.
If you have any questions about how the Autumn Statement impacts the Yorkshire property market, please feel free to give us a call.