Focusing on the key housing sector themes, Propertymark is calling for prioritisation of work with the PRS on homelessness, investment in reliable data collection, and a boost in support for decarbonisation.

Local Housing Allowance (LHA) will at last be unfrozen and Universal Credit (UC) will rise under UK Government tax and spending plans announced by Chancellor of the Exchequer, the Rt Hon Jeremy Hunt, MP, today, 22 November 2023. Rate relief and full expensing for businesses are also included.

Propertymark gave evidence to the Scottish Parliament’s Local Government, Housing and Planning Committee on 21 November 2023 outlining that the Scottish Government’s plans to increase council tax premiums on second homes are not an effective policy measure to increase the supply of homes and grant funding is needed to support getting empty homes back into use.  

Shared housing tenants in England may save as much as £1,000 a year after the UK Government announced it is ending the practice of council tax banding individual rooms in houses in multiple occupation, a move Propertymark supported in our response to the consultation in March 2023.

With a General Election on the horizon, the UK Government has an opportunity to support landlords, tenants, and property agents with the impact of the cost of living through welfare reform, bring down energy bills by improving the energy efficiency of homes and reducing the tax burden on landlords and investors to tackle the demand the crisis in the private rented sector.

In a speech designed to remind voters of her economic pedigree and credibility to manage the economy, Shadow Chancellor Rachel Reeves announced her intention to increase the Stamp Duty surcharge for overseas buyers.

Sometimes called a hybrid business model, the schemes are being used by individual landlords to avoid paying tax on their property income and reduce capital gains tax. Those who use these arrangements may have to pay more than the tax they tried to avoid as well as paying interest, penalties, and high fees.

The Scottish Government has put proposals before Holyrood which would give local councils the discretion to charge Council Tax premiums of up to 100% on second homes, bringing them in line with long-term empty properties. If approved, the new measures could come into force by April 2024.

The private rented sector (PRS) is a key housing provider across the UK and to encourage investment and reduce rents, the UK Government must review the impact of tax and financial changes on landlords.

Using survey data from Propertymark members, and other private and public sector organisations, this position paper highlights the detrimental impact that government decisions since 2015 have had on the tax and financial situation for landlords in the PRS.

Propertymark has added their voice to a group of financial, commercial and housing sector partners in a letter to the Chancellor to encourage new fiscal support in the form of a simple tax restructure to allow energy performance improvements to be offset against rental income to help make investment more attractive for landlords.

Responding to the Scottish Government’s consultation on the increasing council tax premiums for second and empty homes, Propertymark’s members are strongly against this approach, especially for second homes, and it is recommended homeowners should be incentivised to bring empty homes back into use.

As part of the Levelling Up and Regeneration Bill, the UK Government is seeking views on the range of possible circumstances where properties in England will not be liable for either the long-term empty homes premium, the second homes premium, or both.

The Independent Fiscal Commission has published their report following a consultation on devolution of fiscal powers in Northern Ireland and made 23 recommendations with the goal of providing a comprehensive framework for delivering fiscal powers to the Northern Ireland Assembly.

Propertymark is broadly in favour of the proposed changes to the Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS) in Scotland, but our members are concerned about the technical and inaccessible language used in the consultation and proposals. Clear and user-friendly guidance should be written when changes are made to the legislation.

Chancellor Jeremy Hunt announced in his Autumn Statement in 2022 that the current Capital Gains Tax allowance of £12,300 is being halved to £6,000 from April 2023 and then cut again to £3,000 from April 2024. That could mean an increased tax bill for many property owners planning to sell in 2023, but what can be done to avoid it?