The Autumn Budget took place on 27th October 2021
Following the Autumn Budget from Chancellor of the Exchequer Rishi Sunak, Bagshaws Residential outlines the key housing announcements made earlier today and what they mean for the housing market...
- £24bn of investment into housing - the largest cash investment in a decade according to the Chancellor.
- £11.5bn of this investment to go towards affordable housing specifically, in a bid to make home ownership more affordable for everyone.
- 180,000 affordable homes to be built on brownfield sites, opening up otherwise unused land and derelict buildings for development.
- 4% ‘Residential Property Development Tax’ on developers with profits over £25m, which will apply to around 30 of the largest developers in the UK.
- £5bn funding from the new Residential Property Development Tax to allocate to the removal of unsafe cladding, a step towards tackling the cladding crisis.
- £640m a year to combat rough sleeping and homelessness
- £65m to reform the planning system
- Capital Gains Tax payment window extended from 30 - 60 days.
Other major announcements included:
- Inflation at 3.4% in September and set to rise further to 4% average in 2022.
- National Living Wage to increase to £9.50 an hour.
- Universal Credit taper rate will be cut from 63% to 55%.
- 50% discount on business rates for the retail, hospitality and leisure sectors in England in 2022-23.
- Rise in fuel tax cancelled.
- Whitehall departments to receive a total of £150bn funding collectively across the course of this parliament.
- Schools to receive an extra £4.7bn by 2024-25.
- Domestic flights within the UK to be subject to a new lower ‘Air Passenger Duty’ from April 2023.
- Planned rise in duty on alcohol cancelled and simplified duties on alcohol introduced.
For further information on the housing market in your area, please contact your local Bagshaws Residential branch.