What Chancellor Hunt's Autumn Statement means for Birmingham

23rd Nov 2023
Richard Crathorne
What Chancellor Hunt's Autumn Statement means for Birmingham - John Shepherd

In his Autumn Statement, Chancellor Jeremy Hunt revealed a series of notable changes that are poised to benefit various sectors of the West Midlands property market. These changes may not be revolutionary, but they hold promise for private renters, landlords, and first-time buyers alike.

One key update is the increase in the Local Housing Allowance (LHA), which will now cover the 30th percentile of local rental market rents starting next year. Long advocated for by landlord and lettings agency groups, this adjustment aims to assist roughly 1.6 million households in both the private and social housing sectors.

The impact of this change is significant, as each household receiving LHA will see an annual increase of approximately £800. This will help mitigate the rising rental market rents observed over the past few years.

Furthermore, the government is further bolstering its commitment to supporting first-time buyers by extending the 95% Mortgage Guarantee Scheme until June 2025. Originally set to expire earlier, this extension provides an additional 18 months of support and is a strategic move to bolster the property market and assist those looking to step onto the property ladder.

There are also proposed changes in planning regulations, with the government considering a shift in Permitted Development Rights. This change would allow the conversion of any house into two flats without altering the external appearance. Such a potential change presents new avenues for property development and offers increased flexibility in housing options.

Lastly, the decrease in national insurance contributions will positively impact disposable income for all, thereby, albeit to a small extent, enhancing affordability for buyers. This is particularly relevant given recent increases in interest rates.

If you have any inquiries regarding the implications of the Autumn Statement on the West Midlands property market, please do not hesitate to reach out.