What did the 2021 March budget bring for landlords?

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  • What did the 2021 March budget bring for landlords?

March Budget

The chancellor Rishi Sunak today made some announcements regarding the budget and what will happen over the next few years.

Obviously at some point there must be some payment back of the money that is paid out for the furlough and other grants that has been given to businesses.

We want to outline some key areas that may affect landlords buying properties. These are as follows.

Stamp Duty Holiday

There will be a stamp duty holiday on all properties up to half a million will be extended from the 31st March to the 30th June. However, it does not stop there. From the 1st July the holiday will apply only up to £250,000 until the end of September. From October the 1st it will go back to pre-Covid stamp duty thresholds and levels resume.

However, for purchases from the start of July till the end of September the maximum SDL saving will be just £2500 sizably less than the £15,000 saving under the possible current holiday which continues to the end of June. So far, no details have been released on whether these dates will end up being the cliff edge or will be tapered to avoid a last-minute rush for some buyers.

Co-operation Tax

Landlords who have incorporated as well as letting agency businesses will be disappointed under co-operation tax. However, this does not come into place until April 2023 and there are some limits. The changes have limits on. There will be an exemption from the higher rate for smaller companies who are paying 90% rate until annual profits are up to £50,000. It will then go to higher rate when profits are applied between £250,000 and then higher again above this. You should consider whether incorporation is still for you but in this moment of time it still looks quite attractive.

Capital Gains Tax

There was no announcement on capital gains tax prompting that this may be the subject of extensive consultation on radical changes. The consultation starts in March 2023 with a release of a so-called Tax Day proposal.

Personal Finances

Personal allowance and income tax thresholds for basic and higher rates taxpayers will rise in April will then freeze until 2026 increasing their tax as earnings rise. Income rates and thresholds are set separately in Scotland and Wales. Inheritance tax nil band rate, capital gains and pension lifetime allowance will remain unchanged until April 2026. Anyone with a total pension value of above £1,730,100 may now chase additional charges. ISA limits remain unchanged.

However, with the budget when it comes to alcohol the duty on spirits, wine, beer, and cider now remains frozen for 2021-2022.

Fuel

The chancellor can gain resisted calls to raise duty on petrol and diesel has now been frozen for more than a decade.

NHS

They have estimated 1.65 billion will be injected into the vacation programme. The devolved administrations are also receiving additional funding in their usual way.

Furlough scheme

The corona virus job retention scheme will be extended past its 30th April cut off until the end of September. The government will pay 80% of the wages for furloughed staff until the summer. The businesses will then be asked to pay a further 10% of wages in July and a further 20% in August and September. Basically, this means that you in effect will have to pay additional money while the government reduces theirs. Support for self-employed workers will continue till September. This expands the cover for those who started work for themselves in 2019-2020.

Extra Business Support

The 5% VAT rate for the hospitality section will remain until the end of September. This will be furlough by a further 12.5% until the end of next April. They will re-start grants offering to businesses such as non-essential retails in England while the 0% rate on business rates will extend to the end of June. For the rest of 2021 – 2022 rates for business will be discounted by 2/3 as stated within the budget announcement.

Business Investments

For the next two years, businesses will be allowed to off set 130% of their investment spending against their tax bills. With investment levels having stumped during the pandemic the chancellor hopes that this policy will help drive improvements in growth and productivity across the UK. You should speak to your accountant on whether this includes improvements or repairs when it comes to properties. The devil is normally in the details.

Universal Credit to be extended for a further 6 months in relation to the weekly £20.00 up lift.

Apprenticeship grants to rise to £3,000.

Another 400 million to help art venues in England to re-open and 300 million for professional sport and 25 for grass roots football to re-open.

An additional 90 million for domestic violence programmes and 40 million for the thalidomide victims.

When it comes to budgets what you often find is there is a lot more detail from the government later. So, there may be more detail to come through.

Is there something that landlords should consider now that the stamp duty holiday has come up?

Yes, there are various things that we think you should consider regarding new budget.

Choose the right location.

The slowest local authorities are now taking over 100 days to return property searches and, in some cases, even longer. Take this into account when you are looking to purchase a property.

Choose the right property.

Certain transactions can take 11% longer than others for instance such as flats rather than houses. It is important that you understand how long these transactions take.

Choosing the right lender. It is so important that you choose the right lender when dealing with properties. The best advice is to contact the lender before you even start to see how long they are taking not only for their processes but the valuations as well.

95% Mortgages

The government has now entered a guarantee for 95% mortgage loans available for buyers for the next month. This is for purchases up to £600,000. We understand that this type on the market has been quiet for some time mainly because people either want outside areas therefore people who have properties are unable to sell them or alternatively 95% mortgages are currently not available. Unfortunately, at this moment in time there are only a few lenders that the government has been able to agree with to crease this scheme. In real terms the government are guaranteeing the mortgages for the banks if they do not get repaid. So far, they have been able to agree this with lenders such as Barclays, HSBC, Lloyds Bank, NatWest and Santander.

The government is looking to bring back the 95% mortgages in a big way, but two significant challenges remain.

Rates on low deposit deals are very high now with the cheapest number of mortgages around 1.3 more expensive than the pandemic.

With 95% deals price well over 3% 95% mortgages could be even more expensive.

Secondly, the scheme wont necessarily make the property more affordable for first time buyers, rather than enabling them to borrow more to afford the property. If house prices remain high, some first-time buyers may struggle to get on the ladder even with the help of a new scheme.

How will the budget effect the letting market?

The guarantee is interesting in respect of mortgages up to 95% for first time buyers. However, it fundamentally does not solve the problem with high prices and people still struggling to be able to borrow enough money from the banks to purchase properties. We understand for instance in Brighton and Hove that there are currently over 4,000 flats on the market and very little movement in this area. One of the main reasons is due to Covid because people now want an outside area, and a lot of these properties do not have them.

Do we anticipate that the 95% mortgage will affect the letting market and the answer is probably at this moment in time, no. The residential market for the lower of the properties is extremely active due to people not wishing to move during this difficult time. Pushing one-bedroom prices up quite dramatically. This has also affected almost the whole of the residential market in similar circumstances.

If you do have another property and wanted a free valuation or to check you are getting the right income, then please do not hesitate to contact us. Please also click here to read our article for First time buyers.

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google-review Review
Cat Westmacott
Cat Westmacott
17:57 10 Jun 24
Generally helpful for Lettings. As with any company, sometimes need a push for a response, but often easier to speak on the phone than email. Feeling hopeful for the next year’s contract with Harringtons🤞.
Kirsty Turner
Kirsty Turner
20:50 04 Jun 24
Great experience. Everyone is so lovely and helpful over the phone at Harringtons! The best experience we have had with a letting agent in Brighton, none of the other agents in Brighton have been bothered to keep in touch and help us find a property as much as these guys. A special shoutout to the lovely lady who showed me around the flat (Georgie I believe -sorry if I got that wrong), great at answering all my questions and been very lucky in securing the first property we viewed with her (an amazing spacious flat that has everything we need - including nice storage space for our paddleboards!) Looking forward to moving into our seaside home. Thank you!
Shadan B
Shadan B
23:31 30 May 24
Great experience, very helpful staff and friendly. I wish you all the success. Thanks for your care. 💐😊
Rachel Roberts
Rachel Roberts
21:13 30 May 24
Best experience I've had with a letting agent!
Charley Besant
Charley Besant
10:25 30 May 24
So far the process with Harringtons has been amazing. We viewed 3 properties with Georgie and each time she was so informative and kind, she gave us the time we needed in each property to look around, take videos and ask questions about everything. The whole process has been easy so far and I can now happily say we found our property thanks to Georgie and the team at Harringtons.
Ainhoa Negro
Ainhoa Negro
09:15 30 May 24
Georgie at Harringtons Lettings in Brighton has been exceptional throughout my rental process. From the very beginning, her professionalism and friendliness stood out. She provided clear and prompt communication, ensuring all my questions were answered thoroughly. Georgie made the entire experience seamless, from viewing properties to finalizing the paperwork. Her attention to detail and genuine care for my needs made me feel confident and supported. I highly recommend Georgie and Harringtons Lettings to anyone looking for a top-notch rental experience in Brighton.
PRBL1
PRBL1
09:11 30 May 24
Joel Starcross
Joel Starcross
15:22 29 May 24
Beth has been an excellent agent, great communicator and enthusiastic member of the team. Highly recommended!
Jess Pond
Jess Pond
13:16 29 May 24
Had an absolutely awful experience with this company. Told me one thing on the phone and then told me another thing on email. Very mixed messages. Left 7 students homeless by putting the house back on the market with only 24 hour notice. Will never use them again. AVOID!
Roisin Lilley
Roisin Lilley
11:42 24 May 24
I recently had some problems with my previous agent and came to Beth for help! She took over the correspondence for me and sorted everything out for me! I can’t thank her enough for her patience and help!! I’d highly recommend her to other landlords that need help!
Chris Lilley
Chris Lilley
11:26 24 May 24
I’ve been a tenant with Harringtons Lettings for a while, they are great, they always sort out any issues I have quickly and efficiently, Beth in particular is really helpful and I’ll be going to her for my next rental property when I look to move in September!
Georgina Palzeaird
Georgina Palzeaird
11:21 24 May 24
Beth Roberts was a huge help when I needed to switch to a new letting agency. She was friendly and efficient and I’ve always felt I’m in safe hands.
Eliya Halim
Eliya Halim
10:26 24 May 24
Top service
Maryana Atiya
Maryana Atiya
10:20 24 May 24
Rees Harper
Rees Harper
17:53 21 May 24
Lauryn Keller
Lauryn Keller
15:20 03 May 24
Georgie was great on our viewing - super lovely, informative and honest. Thank you!
Sammi Richmond
Sammi Richmond
09:16 24 Apr 24
Well, they just contacted me via email asking for a review for money... so here, I guess.Does 3 stars get me that tenner? Probably not. Nothing terrible to say, but never had any issues with the property really. Don't enjoy that they were willing to pay for reviews though, seems sketchy.UPDATE: As the business has finally replied to my review 6 years later, I thought I would mention that I indeed have the email still as proof. Offer of £10 for a review, and to mention Rachel Erridge in the review. Also a prize of £200 to one lucky winner. The email was sent from the Harrington's admin email address. I can email the proof to whoever requests it.
Jayden Charles-Frempong
Jayden Charles-Frempong
01:20 18 Apr 24
Every interaction I've had so far with Harrington has been positive with workers responding to calls very quickly and addressing any queries efficiently.
severin severinov
severin severinov
10:05 11 Apr 24
It is very good that they do their job professionally and take care of the customers.
kate quick
kate quick
13:15 09 Apr 24
I am very happy and extremely grateful to have found Harringtons lettings and the beautiful flat that I am now living in. Not only is the flat perfect for me, ticks all the boxes and is in a great location; the whole communication/admin process was so fast and efficient. I spoke to many of the team, but the two main contacts initially were Georgie and Beth. Great personalities, friendly and fast at replying to emails and phone calls. It was all turned around very quickly and everyone at Harringtons seems to appear to really be happy in their jobs. Great letting agent and I would recommend them to others looking for a new home.
Michael Hollamby
Michael Hollamby
12:32 09 Apr 24
Having worked with many many lettings it has been refreshing to deal with such a dynamic and energetic team. From start to finish the team have outstanding. Special mention to Beth who has been fantastic. I can thoroughly recommend using Harringtons.
Celyn James
Celyn James
17:08 27 Mar 24
Great experience, Georgie was so knowledgeable and kind with any enquiries I had. Really put me at ease while house hunting, amazing service thank you so much!!
Madison Harris
Madison Harris
14:29 27 Mar 24
Georgie was so helpful and really kind very appreciative x
Amber-Rose Cook
Amber-Rose Cook
08:58 22 Mar 24
easy to use and navigate as a first time user
Buffy Vaughn
Buffy Vaughn
18:06 21 Mar 24
Harringtons have been so helpful so far. Everyone we’ve spoken to on the phone including Georgie have been so warm and receptive and easy to communicate with. As a couple renting together for first time me & Danny couldn’t have found better people to help us out, they’re clear and concise. We discovered them through Rightmove and would highly recommend anyone to use their services to rent with.Thanks guys!Buffy & Danny
Sajan Raja
Sajan Raja
01:48 21 Mar 24
Kerryn Johnson
Kerryn Johnson
16:58 18 Mar 24
Georgie was absolutely amazing! Very helpful, easy to talk to and all in all an absolute sweetheart. Made the process of renting and finding a property less stressful. Always happy to help and lovely to chat to!Thank you again for everything!
Julia Reinstein
Julia Reinstein
11:22 18 Mar 24
5/5 - Everyone I’ve spoken to on the phone has been so friendly and patient with our move in documents. We found Harringtons through Rightmove, and have been really happy with our interactions. The team respond to queries efficiently and are happy to answer any and all questions.
Andrew Brown
Andrew Brown
07:09 15 Mar 24
A really excellent agency, who are very easy and friendly to deal with. Highly recommended.
Rob Rainbird
Rob Rainbird
18:04 13 Mar 24
Lovely staff and all round positive experience - Georgie is an absolute diamond and a credit to the team!
Tori Tor
Tori Tor
11:15 08 Mar 24
Harringtons have been really helpful and very swift with their responses. Georgie was very proffesional and really friendly when she did the viewings with me and Beth on the phone was again really helpful and gave me hope when I was explaining my eagerness to find somewhere new to live. Thanks Harringtons!
christos papanicolaou
christos papanicolaou
09:33 07 Mar 24
Staff were brilliant. Very helpful
Yasmin Bright
Yasmin Bright
20:54 01 Mar 24
I'm in a difficult situation at the moment with my landlord wanting to sell the flat that myself and my 3 children have been living in for 7 years. I came across Harringtons Viewings by applying to view some properties outside of my area.Unfortunately I haven't been able to sort anything with Harringtons, however I wanted to write this to say that they have been nothing but kind, warm and very understanding of my situation. I've been really impressed by their customer service (namely Georgie & Beth) and hope that they are able to find me something eventually!Thanks so much.Yasmin
Tegan
Tegan
17:30 22 Feb 24
Have been very accommodating and helpful when calling agents. They have been very helpful in being able to secure a house for students.
TheFlyingCrocodile
TheFlyingCrocodile
16:42 21 Feb 24
Went above and beyond to get things sorted for me
Brittany Stace
Brittany Stace
11:18 24 Jan 24
Harringtons have been incredibly helpful and supportive of us as new renters and they have been super efficient in getting all of the documents sent through and signed in such a short period of time. Thank you!
Georgie Prebble
Georgie Prebble
20:36 05 Jan 24
Jade Innes
Jade Innes
10:24 04 Jan 24
So far the service has been good. The staff are very friendly and quick to respond to any questions and requests.
Polly Smith
Polly Smith
11:17 28 Dec 23
we chose this letting agents as they chose a good bills company that is much cheaper than other agents. When viewing houses the staff were very friendly and have been very helpful in answering our questions and making the process as easy as possible.
Emma Howe
Emma Howe
16:06 14 Nov 23
I would rate Harringtons Lettings a 5/5. Very lovely on the phone and very quick and easy to communicate with via email. Any problems have been resolved in no time at all. So far so good!I found Harringtons via Rightmove.
Akwisitions Feedback
Akwisitions Feedback
16:25 30 Oct 23
Very responsive and super helpful throughout the process. Highly recommended!
Chloe Ballard
Chloe Ballard
17:28 02 Oct 23
Although I have only been renting with Harringtons for a short period of time, I have had nothing but a positive experience. From viewing to admin updates. The admin team especially are very polite and quick to respond and I have no doubt that the rest of my tenancy will run smoothly. I would recommend to anyone considering renting in brighton.
Matthew Ball
Matthew Ball
11:46 19 Sep 23
Professional communication with tenant although entirely impersonal. There was a bigger disconnect in their communication with the landlord in most cases, which seemed to be either slow or non-existent (discovered after contacting the landlord directly).Property was full of spider webs on day 1 despite apparently being professionally cleaned. Took a day off of work to clean it on move out day, leaving it cleaner than when it received but still had to pay part of the deposit for professional cleaning.It has been a while since I have rented, but I'll avoid letting agencies completely now if this is anything close to the average renting experience.
Ronan SK
Ronan SK
12:38 12 Sep 23
Great professionalism/communciation from the start up until the end of my tenancy. Definitely set the standards for what agencies should be like. Highly recommend to those within Brighton.
Daniel Sutton
Daniel Sutton
10:29 24 Aug 23
I have rented with Harringtons Lettings before and have always found the agents to be quick, efficient, friendly and helpful. I loved their service so much I have chosen to rent with Harringtons again. Faultless 😊
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