What Chancellor Hunt's Autumn Statement means for Scotland
Chancellor Jeremy Hunt announced a series of changes in his Autumn Statement, aimed at benefiting various sectors of the Scotland property market. One of the significant updates is the increase in the Local Housing Allowance (LHA) to cover the 30th percentile of local rental market rents. This adjustment, supported by landlord and lettings agency groups, aims to assist approximately 1.6 million households in both private and social housing sectors.
The impact of this change is substantial, translating to an annual increase of around £800 for each household receiving LHA. It will help cover a significant portion of the recent uplift in rental market rents.
The government's commitment to supporting first-time buyers is further emphasized by the extension of the 95% Mortgage Guarantee Scheme until the end of June 2025. This strategic move aims to bolster the property market and provide additional support for those stepping onto the property ladder.
Proposed changes in planning regulations include a potential shift in Permitted Development Rights, allowing the conversion of any house into two flats without altering the external appearance. This change could create new opportunities for property development and offer more flexibility in housing options.
Furthermore, the decrease in national insurance contributions will provide individuals with improved disposable income, which, albeit in a small way, can contribute to buyers' affordability. This is particularly important considering recent increases in interest rates.
If you have any questions regarding the impact of the Autumn Statement on the Scotland property market, please feel free to give us a call. We are here to assist you.