24th November 2016 | Posted in: News

The following is intended only as a brief review of how we feel the private rented sector will be affected by the announcements in the autumn statement.  Not a lot of surprises as there have been many announcements in the last few days.

 

Letting Agent Fees

Charging of fees to tenants by letting agents to be banned as soon as possible.  Administration fees, reference fees and credit checks will still be chargeable.

Banning of letting agent fees has been in force in Scotland and has seen landlords facing extra costs and often increasing rents to meet those costs.

When this ban was announced a short while ago Gavin Barwell MP (Minister for Housing and Planning) tweeted “Bad idea – landlords would pass costs on to tenants via rent. We’re looking at other ways to cut upfront costs & raise standards”.

 

Insurance Premium Tax

The basic rate of Insurance Premium Tax will rise from 10% to 12% from 1 June 2017.

 

SOME GOOD NEWS:

 

Tax thresholds

No change to previously announced increase to tax-free allowance from £11,000 to £11,500 by April and £12,500 by 2020.

Commitment to raise the top threshold to £50,000 remains.

 

Fuel duty

Cancelled for the seventh consecutive year.

 

Universal Credit

A reduction in the rate at which benefits are withdrawn from people when they start work The taper rate at which universal credit is withdrawn as earnings rise to be reduced from 65p to 63p.

 

National Living Wage

National Living Wage to rise to £7.50 from April 2017