There was no shock or horror for landlords in yesterday’s Budget. Many were disappointed that stamp duty rates were not revised down, or tinkered with so that first time buyers were exempted; no such luck. However, we think more importantly there was a stop to the tax increases and punishment of private sector landlords.
So from a property investment perspective what were the important announcements?
For Landlords holding properties within a corporate structure (eg. Limited Company) there was a reduction in dividend tax free allowance from £5,000 to £2,000 from 2018, and for self employed people an increase in NI payments. However, these are potentially offset by an ongoing planned reduction in the rate of Corporation Tax to 17% in 2020.
For investment into our favoured area of “East Midlands” there was good news in the announcement that Chancellor Philip Hammond will publish a Midlands Engine Strategy today (9 March 2017) to address “productivity barriers” across the region. The government first outlined its plans to create a ‘Midlands Engine for growth’ in December 2015, estimating the drive could create 300,000 jobs and add £34bn to the region’s economy by 2030. The publication of the blueprint follows in the footsteps of the launch of the Northern Powerhouse Strategy at the Autumn Statement in November 2016.
Furthermore the Midlands will also be awarded £23m of a £220m fund to address pinch point issues on road networks.
Otherwise no good news, but more importantly no bad news.
The economy seems in good shape, the Midlands seem strong and with new “promotion” like the above this will all help.
Buying residential property in the areas we cover of Hull, Kettering & Northampton, Stamford & Lincolnshire and Oakham & Leicestershire would all seem sensible long term investment opportunities.
What were your thoughts on the Budget? Are you concerned about how it might affect you? Get in touch with us today for a confidential chat.