Next week, Philip Hammond will share the details of the very first Autumn Budget, but landlords are already convinced it will hold bad news for them, despite potential new incentives.
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For our summary guide on the Budget announcements and how they will affect landlords, check out our Autumn Budget 2017 summary for landlords.
4 out of 5 landlords say budget will be bad for them
A new survey by Simply Business found that 77 per cent of those asked did not think the 2017 Autumn Budget would be good for landlords.
And it’s not particularly surprising. Landlords have been hit by a raft of changes over the past few years, many of which were announced in the previous Spring Budgets and Autumn Statements.
From the phasing out of mortgage interest tax relief to the 3 per cent surcharge for Capital Gains Tax on buy-to-let properties, some landlords have felt the private rented sector has been under attack by the government in recent times.
Incentives for landlords who ‘do the right thing’
This pessimism is in spite of the incentives for landlords who ‘do the right thing’ that were hinted at by Sajid Javid during his speech to the Conservative party conference earlier this year.
The Secretary of State for Communities and Local Government explained that he wants all landlords to offer tenancies of at least 12 months, and said there would be incentives for landlords who ‘do the right thing’.
David Cox, chief executive of ARLA Propertymark - the trade body for the lettings industry - has suggested the incentive may come in the form of tax relief for those who offer longer term lets.
First UK Autumn Budget could be a mixed bag for landlords
Mr Cox also called for the reversal of ‘punitive’ measures that have impacted landlords, and called for the reinstatement of the landlord’s energy savings allowance (LESA), as well as changes to eviction proceedings.
However, the incentives suggested by Mr Javid are the only potential points of the Autumn Statement to have come from a government source, and it remains to be seen whether any of the other measures will be mentioned, let alone introduced.
It has also been reported that the Chancellor is considering tax breaks for first time buyers, which could cause a further blow to the rental market. Landlords will have to wait until November 22 to heard the Budget in full and see how it could affect them.