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Budget 2018:

Posted on 30 October 2018
Budget 2018:

Good news for some first time buyers.  Stamp duty will be abolished for first-time buyers of shared ownership properties - when someone buys between 25% and 75% of a home and then rents the rest of it.  It will apply to all shared ownership homes worth up to £500,000 and backdated to anyone who has bought one since last year's Budget.

Hammond also addressed the short-lets industry, announcing a consultation on how Airbnb properties should be treated by HMRC; as commercial entities that should pay business rates or private homes that pay council tax.

The government is also to continue its attack on landlords, who will soon have the amount of capital gains tax Lettings Relief given to them for renting out their properties reduced. Only those who share their home with a tenant will not face a reduced relief when they sell.

The Chancellor also revealed a plan to bolster high streets with a £650 million fund and a one-third cut in business rates for shops with a rateable value under £51,000.

Mr Hammond promised an extra £500m for the Housing Infrastructure Fund - a pot of money that local councils can apply to for help with building homes.  This extra cash should help build 650,000 more homes, he said.

The chancellor wants to see more SMEs - small and medium-sized enterprises - building houses, so has announced up to £1bn of British business bank guarantees.

Mr Hammond also said he was providing money to help up to 500 neighbourhoods to allocate land for housing and sell the homes to local people at a discount.

He also confirmed that the cap on councils, which limits their ability to borrow money to build council houses, would be scrapped.