At the Autumn Statement, Chancellor Jeremy Hunt outlined a series of measures aimed at boosting the UK economy and creating a more prosperous future for all.

At the Autumn Statement, Chancellor Jeremy Hunt outlined a series of measures aimed at boosting the UK economy and creating a more prosperous future for all. Among the 110 initiatives, the property sector emerged as a key focus, with several welcome changes designed to enhance investment and stimulate growth.

PLANNING

The government announced that it will unlock tens of thousands of new homes by investing in the planning system.

A new planning service will be introduced to speed up planning decisions. Applicants will have to pay the full cost of the process, which will be refunded if the planning authority does not meet the stated timescale. This emphasis on efficiency will expedite the delivery of new infrastructure, such as housing developments, transport networks, and essential public facilities.

The Autumn Statement also included a proposal to make splitting a house into two flats easier under the planning system.

HOUSING AFFORDABILITY BOOSTED WITH INCREASED LOCAL HOUSING ALLOWANCE (LHA) RATES

The government has announced a significant increase in Local Housing Allowance (LHA) rates, effective from April 2024. This measure will align LHA payments with 30% of local market rents, benefiting around 1.6 million low-income households. On average, these households can expect an additional £800 annually in rental assistance.

EXPANDING AFFORDABLE HOMES GUARANTEE SCHEME (AHGS) TO INCLUDE RETROFITTED HOMES

The government has expanded the scope of the Affordable Homes Guarantee Scheme (AHGS) to include retrofitted existing homes. This move aims to accelerate the delivery of affordable housing options by providing financing options for developers who renovate existing properties. The AHGS is now open to both non-profit housing associations and for-profit Registered Providers, further enhancing its reach and effectiveness.

NUTRIENT MITIGATION FUND TO SUPPORT HOUSING DEVELOPMENT

The government has committed £110 million to the Local Nutrient Mitigation Fund to assist Local Planning Authorities (LPAs) affected by nutrient neutrality rules. This funding will enable LPAs to implement local nutrient offsetting schemes, addressing nutrient neutrality constraints and expediting the delivery of new housing developments.

INVESTMENT ZONES EXPANDED WITH INCREASED LIFESPAN AND INVESTMENT RELIEFS

The government has announced the addition of five new Investment Zones (IZs) in Manchester, the East and West Midlands, and North and South Wales. Existing IZs will also benefit from an extended lifespan of ten years, up from five, and doubled investment and tax reliefs from £80 million to £160 million. This expansion will attract further investment and boost economic activity in these regions.

FREEPORTS AND INVESTMENT ZONES EXTENDED FOR TEN YEARS TO FOSTER LONG-TERM INVESTMENT

Both Freeports and Investment Zones will now run for ten years, instead of the initial five, providing businesses with greater certainty and encouraging long-term investment in these areas.

MAKING TAX DIGITAL (MTD)

The £30,000 threshold for MTD for income tax self assessment will remain. This means people with gross income from self-employment and property below this threshold will not have to file tax returns using MTD.

The government will also simplify the requirements for all taxpayers providing quarterly updates and for taxpayers with more complex affairs, such as landlords with jointly-owned property. An end of period statement will no longer have to be provided. Overall, the government's measures aim to address the challenges faced by the housing sector, including affordability, development, and regeneration.

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