![\"Lacklustre](\"https:\/\/www.benhams.com\/press-release\/wp-content\/uploads\/2024\/03\/post-budget-image-300x200.jpg\")
The UK government Budget delivered a mixed bag for landlords, property investors and others wanting a sustained recovery in the British economy.<\/p>\nThe UK government Budget delivered a mixed bag for landlords, property investors and others wanting a sustained recovery in the British economy.<\/p>\n
The good news for the property sector revolves around a cut in Capital Gains Tax on property from 28 per cent to 24 per cent – although ironically this will give most benefit to landlords selling their properties.<\/p>\n
Also welcome is a substantial \u00a3242m of investment in Barking Riverside and Canary Wharf in London. Here, the Chancellor says, nearly 8,000 homes will be built “as well as transforming Canary Wharf into a new hub for life science companies”. <\/p>\n
However, this is tempered by several less favourable announcements.<\/p>\n
The government is scrapping so-called Non-Dom tax arrangements under which non-UK citizens had paid UK tax only on their UK earnings, not on those from elsewhere. <\/p>\n
This is widely considered to be a measure which may deter wealth creators from living in the UK – and, therefore, contributing to the prime and super-prime residential sectors, especially in London.<\/p>\n
Overall, these sectors\u2019 economic contribution is significant, generating over \u00a336 billion across some 16,000 transactions last year.<\/p>\n
Also disappointing to the property industry is the confirmation that tax breaks for those letting out furnished property as holiday and short lets will be ended – this is described as a bid to urge investment property owners to shift their units to the long term rental market. However it may be seen as a disincentive to invest in the first place. <\/p>\n
The Budget – as always, and especially now in a General Election year – contained plenty of feel-good announcements aimed at giving short term gains to voters and a confidence boost. <\/p>\n
The Chancellor has reduced National Insurance contributions for most working adults and announced a number of high-profile investments in the NHS, schools and regional projects. <\/p>\n
Whether this is enough to change the political weather remains to be seen: initial reactions has suggested the Budget has been lacklustre and uninspiring. <\/p>\n
Investors, landlords and other members of the property sector have traditionally favoured the Conservatives: this Budget is one of the last opportunities for that party to win over support after multiple polls showing significant Labour leads. <\/p>\n
Next stop – the UK General Election!<\/p>\n
Click the player below if you would like to watch our \u2018UK Budget impact on property\u2019 with Richard Donnell from Zoopla, hosted by Marc von Grundherr. Filmed 07\/03\/24.<\/em><\/p>\n