Here are a few key bits of property news from October 2022: –
Housing Secretary announcement…
Michael Gove has resumed his role as the Levelling Up, Housing and Communities Secretary on the 25th October following Rishi Sunak’s cabinet reshuffle. PropertyMark’s head of policy and campaigns, Timothy Douglas, said: “The Levelling Up agenda and reforms to the private rented sector in England would appear to be back and will take centre stage in the new government as Michael Gove returns to the Department for Levelling Up, Housing and Communities.” “Mr Gove previously focused on regional disparities and fixing the cladding scandal, but he now needs to go further and tackle the supply crisis in the private rented sector, implement the next steps for leasehold reform, set out the UK government’s plans for home buying and selling as well engage with the sector to get more people onto the housing ladder and stimulate right sizing to release large, family homes.”
What is happening with Stamp Duty…
The Stamp Duty Land Tax (Reduction) Bill 2022-23 (SDLT) has been introduced and given its first and second readings in the House of Commons following the mini budget announcements which came into immediate effect on September 23rd. The changes are temporary until the Act receives Royal Assent but since September 23rd in England and Northern Ireland the three changes to SDLT are:
- an increase in the threshold up to which SDLT is not paid – the ‘nil-rate threshold’ – from £125,000 to £250,000
- an increase in the nil-rate threshold for first-time buyers relief, from £300,000 to £425,000
- an increase in the maximum amount first-time buyers can buy a house for and still be eligible for relief, from £500,000 to £625,000
On October 17th the current Chancellor, Jeremy Hunt, confirmed that the changes to SDLT thresholds would remain in place however Rishi Sunak’s cabinet may yet do a u turn. You can read more about the changes here and track the Act’s progress here.
Retail Price Index – what is this?
Most assured shorthold tenancy agreements allow for some kind of rent increase once a year although in reality not all Landlords trigger this. Typical rent increase clauses are in line with either ‘market rent’ or the ‘retail price index’ (RPI) or whichever is the greater. The RPI is a measure of inflation different to the Consumer Price Index (CPI) fluctuating up and down month to month, year to year. The September 2022 RPI rate was 12.6%, compared to 4.9% in September 2021, and it is expected the rate will continue to rise over the next quarter. You can read more about RPI rates here.
As with all our blogs, they are intended as a useful guide only and are not exhaustive. Posted 26th October 2022.
