Rob discusses the recent budget announcement and its implications for business taxes and the housing market. Key highlights include an increase in national insurance contributions for firms, a rise in the stamp duty surcharge on second home purchases from 3% to 5%, and a boost to the affordable homes budget by £500 million. Rob examines the potential impact of these changes on landlords and property investors, particularly regarding their willingness to purchase additional properties. KEY TAKEAWAYS National i...
Rob discusses the recent budget announcement and its implications for business taxes and the housing market. Key highlights include an increase in national insurance contributions for firms, a rise in the stamp duty surcharge on second home purchases from 3% to 5%, and a boost to the affordable homes budget by £500 million. Rob examines the potential impact of these changes on landlords and property investors, particularly regarding their willingness to purchase additional properties.
KEY TAKEAWAYS
- National insurance contributions for firms will rise, with the earnings threshold decreasing from £9,100 to £5,000 and the rate increasing from 13.8% to 15% starting April 2025.
- The stamp duty surcharge on second home purchases in England and Northern Ireland will increase from 3% to 5%, effective October 31st. This change may impact landlords' willingness to buy additional properties.
- The current affordable homes budget, which runs until 2026, will receive an additional £500 million, although there are concerns about whether this is an effective solution to the housing supply issue.
- Social housing providers will be permitted to raise rents above inflation under a multi-year settlement, indicating a shift towards allowing market forces to dictate pricing.
- Analysts suggest that the increase in stamp duty could lead to a decrease in the supply of rental properties, potentially resulting in higher rents for tenants in the remaining homes.
BEST MOMENTS
"Firms are to pay national insurance on workers' earnings above 5,000 pounds from April 2025... with the rate also increasing from 13.8% to 15%."
"The stamp duty surcharge... is to go up from 3% to 5%. By the time you listen to this podcast, that increase has already been put into effect."
"Analysts say this could affect landlords' willingness to buy more properties. If the supply of rental properties is squeezed, that could mean rents rise for tenants in the remaining homes."
"The current affordable homes budget... has been boosted by 500 million pounds. Time will tell if that’s the best thing to do."
"It is just a numbers game. It's not a death knell. It's not all doom and gloom. It just creates more opportunities."
VALUABLE RESOURCES
https://www.bbc.co.uk/news/articles/cx25w7qpr0yo
https://www.bbc.co.uk/news/articles/cdxl1zd07l1o
https://www.gov.uk/government/news/chancellor-to-unlock-housing-in-first-budget
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