PRESS RELEASE: NAPB – The Chancellor Could Have Gone “Further and Faster”
The Chancellor could have gone “further and faster” in rolling out policies which would help homeowners and the property market, an expert has said.
Jonathan Rolande, from the National Association of Property Buyers, said: “Axing the 5% VAT on insulation and energy saving products is welcome and long called for, but Rishi Sunak could have gone even further with enhanced tax reliefs for landlords to get their tenant’s homes warmer and cheaper to run.
“The Spring Statement is only ever the poor relation to the budget itself although in these unprecedented times an opportunity to do more was lost. Many businesses are already thriving, he was right to be prudent to avoid adding to the inflation problem but more targeted help to families would have been welcome.
The fuel cut of 5p is less than the enhanced VAT currently being generated so at today’s prices the Government is still winning. Inflation averaging at 7.4% means much higher rates expected at least for a short time.”
Jonathan Rolande also outlined the measures he’d like to have seen.
“Rishi Sunak could have increased the second property Stamp Duty,” he added. “This would have helped suppress the BTL/second home market. Additionally, we’d have benefited from seeing an increase in overseas buyer stamp duty from 2% to 3% for first property increasing to 4% for subsequent homes. I’d like to see him increase the FTB 0% stamp from £300,000 to £350,000 to reflect the huge price increases we are seeing in the market.
“I’d also back handing landlords tax relief on insulating materials for let property – it is a scandal that tenants must live in cold, expensive to heat homes that they are unable to insulate themselves. We should also cancel 5% VAT for insulation.”
About the NAPB:
We are a group of professionals committed to providing the highest possible standards in the property buying sector. Formed in 2013 the Association has worked closely with The Property Ombudsman to form a new Code of Practice to create a set of guidelines that will raise standards in the industry.
Membership of the Association is voluntary.
All members must have signed up to The Property Ombudsman Code of Practice so consumers can expect a fair and transparent service when selling their home to a member agent, with the additional peace of mind that they can access TPO’s free, impartial and independent dispute resolution service in the event of a complaint.
The NAPB is run by members who are keen to help sellers decide whether a professional cash buyer is right for them. 100% of all income generated by the organisation is re-invested in to marketing and promotion to assist sellers in reaching a decision that’s right for them. For Media/PR queries call Nick Owens on 07709 339653
Spring Statement still leaves many questions unanswered
Yesterday’s Spring statement, which came two years to the day that the nation was plunged into the first national lockdown, was dominated by the ever-present subject of the cost of living crisis.
Rishi Sunak announced an increase in National Insurance, the threshold of which will rise by £3,000 to the same level as income tax, £12,570.
Also announced was a 1p cut to the basic rate of income tax, from 20p to 19p. This, according to the Chancellor, will amount to £5 billion by the end of the sitting Parliament in 2024.
The Chancellor also announced a VAT cut for homeowners who implement energy-saving measures. Solar panels, insulation, and other green energy technologies and materials will be VAT-free for the next five years, down from 5% VAT relief.
This could help offset some of the other costs landlords are being faced with, but not by much. Either way, it’s all part of the roadmap. From 2025, a minimum standard for energy efficiency will be set at C for new rental units.
The government did not increase the stamp duty surcharge on additional homes, though many landlords felt it should have decreased. NRLA has previously called for the surcharge to be done away with, though it reportedly nets the government £10 billion.
The full budget later this year will surely be an interesting one as the cost of living crisis continues on at pace. The next few months will be pivotal, deciding the measures likely to be taken when Autumn rolls around again
Andrew Stanton is the founder and CEO of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder and editor of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.