Following the Spring Budget announcement today (6 March 2024) Dan Channer, Managing Director of Haslams Group comments:
“If immigration adds 672,000 people1 to the population in a year and only 212,570 new homes are built in a year2 then the country needs policies to stimulate housing supply.
“We support the reduction in CGT to stimulate transactions although the unintended consequence may be a reduction in rental stock as landlords take advantage of the change. The move to reduce the tax benefits for holiday let owners is unsurprising and local authorities need the creation of a separate short let planning use class. However, we do not expect this holiday let tax change to have a material effect on housing supply.
“Ultimately, we are underwhelmed. The Conservatives are spending their political capital on the Rent Reform Bill but offer nothing to increase the supply of housing. The Land Registry is sponsoring a move to digitise the home buying and selling process but progress is slow. Keir Starmer says he wants “Labour to be the party of home ownership” but he has published zero policies beyond the promise to “reform planning laws to kickstart 1.5 million new homes3.” We look forward to learning more detail.
“If the political leaders listen to the housing industry, they will hear about constructive policies:
- Reducing SDLT for downsizers in older age brackets
- Enable energy efficiency measures and improvements to be tax-deductible for landlords
- Increase of council tax on any property which is neither tenanted or a Principal Private Residence (main home) to reduce the number of empty homes
- Temporary removal of additional SDLT charge for investment purchases
- Reconsider the Section 24 taxation changes on mortgages to alleviate rental supply shortages”
1. ONS figures for net migration in 2023
2. Housing Today for new homes in 2022/2023
3. Labour Manifesto Jan 2024