Autumn Budget 2021 Property Update
Chancellor Rishi Sunak today announced the Autumn Budget, which increases funding to the Scottish Government by £4.6 billion, a figure which he said was the “largest public grants for Scotland and the other devolved nations since the devolution settlements of 1998.”
A total of £170 million is to be allocated to Scotland as part of the government’s “levelling up” fund, including a project in Aberdeen, Mr Sunak said The focus on the property sector was almost exclusively aimed at boosting investment for house builders and redevelopment, including further investment for the removal of hazardous high-rise cladding.
High-profile issues surrounding Stamp Duty, Inheritance Tax and Capital Gains Tax were absent during the announcement, though we’ll delve into the specifics when the budget is published later today. (If we uncover anything, we’ll be sure to update you here.)
New Homes: Affordable Housing Investment & Redevelopment
Mr Sunak is promising a multi-year housing investment of £24 billion, including £11.5 billion towards building 180k affordable new homes.
He also announced a further £1.8 billion to develop brownfield sites across the UK, with the potential to build 160,000 new homes. Both these measures are the Government’s answer for helping to stabilise the housing stock crisis, largely impacted by the halts in output caused by lockdowns throughout the pandemic.
Removal of unsafe cladding
Long campaigned for in response to the tragic events at Grenfell Tower in 2017, the Chancellor also announced £5 billion to remove unsafe cladding from high-risk high rise residential buildings.
This sum is said to be funded in part by the Residential Property Developers Tax, levied on housing developers at a rate of 4% with profits over £25 million.
Business rates and green investment relief
Business rates received attention too. Revaluations will now occur every 3 years from 2023, with the hope of creating a fairer system and “stronger High Streets”. A new 50% business rate discount for retail, hospitality and leisure sectors could save business up to a maximum of £110,000 over the course of one year. Green measures are being encouraged too, with investment relief available for companies who adopt energy-efficient changes.
If you have any questions about how the new Budget affects you at a buyer or seller, please feel free to get in touch with us at your local Braemore office.