Autumn Statement – November 2023 - Key Points
The Autumn Statement (budget) is an annual announcement that outlines the government’s plans for the year ahead. Here we look at 6 key points that could impact our landlords and tenants.
6 Key points from the Autumn Statement – November 2023
1. Local Housing Allowance increases to support lower income tenants.
This measure will have a positive impact on our lower income tenants.
Local Housing Allowance is used to calculate the maximum amount that private renters can claim in Universal Credit or in Housing Benefits. The exact price that can be claimed varies depending on the area of the country, the number of bedrooms needed, and the price of rent.
2. Higher wages for lower earners
The National Living Wage will increase from £10.42 to £11.44 an hour and has now been expanded to include anyone 21 years old and above.
This measure will have a positive impact on our lower income tenants.
3. Building new homes
The government has committed to spending more money on building new homes and relaxing planning rules. The Chancellor committed to investing £110 million into “nutrient mitigation schemes”, which could lead to the building of 40,000 more homes.
There was also a commitment for £450 million worth of funding to local authorities to build 2,400 new homes, and a £32 million investment to tackle planning backlogs in Cambridge, London, and Leeds.
4. Self-employed landlords receive tax cuts
The government announced tax cuts for self-employed people in the UK.
The cuts include an abolishment of class 2 national insurance for self-employed people earning more than £12,570 a year.
This means that affected self-employed people will not need to pay a current compulsory charge of £3.45 a week - saving around £192 a year. Meanwhile, self-employed people who pay class 4 national insurance will now pay 8% (rather than 9%) on all earnings.
Taken together, these measures will save self-employed landlords and letting agents up to £350.
5. Opportunities for property developers, including converting houses to flats
The Chancellor has announced his intention to consult on a new permitted development right, enabling any home to be converted into two flats, so long as “the exterior remains unaffected”.
Homebuilders may benefit from new premium planning services across England with guaranteed accelerated decision dates for major applications, and fee refunds wherever these are not met.
6. One pension pot for life to affect entire rented sector
Multiple announcements were made regarding pensions, including a commitment to the ‘triple lock’ which increases the full state pension by up to £221.20 a week (up by 8.5%).
There was also an announcement around consolidating pensions creating “one pension pot for life”.
Traditionally, employers are generally obligated to automatically enrol new staff into a pension scheme that is chosen by the organisation. Which has resulted in many people have lots of different small pension pots. New measures will make it easier for saving to be consolidate in a single pension pot.