Date Published 17 March 2023
What has the budget done for landlords and tenants?
The best thing you can say about the Spring Budget is that it hasn't done anything to hurt the UK rental market.
But nor has it delivered the measures the Private Rental Sector was hoping for to address the issues of landlords leaving the industry, and the imbalance between supply and demand.
Neither was there a cut in Stamp Duty, which could have encouraged more landlords to add to their portfolios.
There have been some moves to help developers build more homes.
News to boost confidence
The market should be heartened by the news that inflation is predicted to fall, according to the Office for Budget Responsibility in its reaction to the Budget.
It's set to fall from 10.1% in January 2023, to 2.9% by the end of the year.
More good news is that the UK has narrowly avoided going into recession – and energy price falls should soon be passed on to consumers.
All of this should leave landlords and tenants with more money in their pockets.
Help with energy costs
The Chancellor Jeremy Hunt has reversed his policy of ending the Energy Price Guarantee in April 2023, which limits the average household gas and electricity bills to £2,500 a year.
This mechanism has now been extended until July.
Help for childcare and for retirees
With rents on the rise, many tenanting couples would like to make more money, but the cost of childcare has long been considered a barrier to parents returning to work.
Working parents are already entitled to 30 hours of free childcare per week for three-to-four-year-olds.
But this will now be extended in a £5bn package, with 15 free hours a week for two-year-olds in April 2024, for children aged over nine months in September 2024, then 30 hours for all from September 2025,
The Chancellor also announced a £63m ‘Returnerships' programme for over-50s who might want to return to work in a different sector.
In order to keep more highly-paid people in the NHS and elsewhere, the tax-free limit on pension savings has been abolished, and the annual allowance – how much you can save into a pension without attracting tax – has been raised from £40,000 to £60,000.
Easier to find tradespeople?
Following an appeal from the Home Builders Federation, the government has increased its list of skilled workers who are allowed to come from abroad to work in the UK.
This will now include bricklayers, roofers, carpenters and plasterers.
Though this is mainly aimed at easing problems for developers, it will also help existing landlords and letting agents by creating a wider pool of tradespeople to draw from.
Another measure to ease what has been described as a 'major barrier' to housebuilding is being launched.
There will now be more support to mitigate high levels of wastewater pollution which must be done on new development sites.
More new homes can only be good news for landlords and tenants alike, as there are currently not enough properties to rent.
Other policies
• £200 million for councils to fix potholes
• £900 million for the UK's artificial intelligence sector
• A 12-month extension to the freeze of fuel duty
• Tax breaks for the entertainment industry
• The abolition of the Work Capacity Assessment, allowing disabled people to take a job without fear of losing all benefits.
Elsewhere in the UK, almost £1bn has been split between eight large local authorities to create 12 new enterprise zones.
Here at Cosy Resi, we specialise in property and HMO management. We can help you to get the most from your tenancies by offering a wealth of knowledge and experience.
We pride ourselves on our personalised relationships with each of our customers. Why not contact us to see what we can do for you?
Meta description: Spring Budget brings only indirect help for landlords and tenants
Meta tags: Spring Budget, Energy Price Guarantee, free childcare, returnerships, skilled workers list
Source: www.gov.uk/government/publications/spring-budget-2023
