Highlights for landlords from the 2024 Autumn Statement

One of the most significant financial announcements of the year, the government’s Autumn Statement will set the course for the rest of the year and provide insights into what to expect in 2024.

Although there weren’t any significant announcements related to the rental sector in this year’s Autumn Statement, the Chancellor Jeremy Hunt made some noteworthy announcements that will impact landlords, either directly or indirectly.

To help you sort through all the information released in the Autumn Statement, we’ve compiled a list of four main announcements that could impact landlords. These encompass changes ranging from tenants to tax reforms and broader shifts within the housing market.
 

Increased Local Housing Allowance for tenants

Tenants on lower incomes will receive additional assistance to cover rental housing costs through an increase in the Local Housing Allowance (LHA). LHA rates, which determine Housing Benefit entitlement for tenants in the private sector, will be raised to cover at least 30% of local market rents. On average, this amounts to £800 of support, although actual amounts may differ depending on factors such as property size and location.
 

Tax cuts for self-employed landlords

While not directly related to housing, the tax cuts announced for self-employed people should have a positive impact for a number of professional landlords. According to the 2021 English private landlord survey, approximately 13% of landlords are self-employed as a landlord, with that number going to 39% among landlords who own five or more properties.

The Chancellor plans to abolish Class 2 National Insurance and reduce Class 4 National Insurance from 9% to 8% on all earnings. These combined measures could potentially save self-employed landlords up to £250 a year.
 

Boosting new home building efforts

The Chancellor has committed to investing £110 million in nutrient mitigation schemes to facilitate the building of new homes. New home developers can purchase credits under these schemes to offset nutrient pollution resulting from housing development. More funding will also be allocated to local authorities to construct new homes and tackle planning backlogs in Leeds, London, and Cambridge.

With more homes available, it is hoped this could reduce pressure on the rental sector by encouraging more renters to buy new homes.
 

Transforming a home into two flats to be made easier

Property developers can anticipate a consultation on a new Permitted Development Right. This proposed change aims to simplify the conversion of homes into two flats, providing you do so ‘without changing the facade’. Together with the funding allocated to address backlog issues with Local Planning Authorities, this measure could enable landlords to potentially double their income by developing their properties and accommodating a greater number of tenants.
 

Helping you through legislation change is one of the things we offer as part of our Fully Managed landlord service. Get in contact with our Property Management team to find out more.

The information contained within was correct at the time of publication but is subject to change.