On Friday 23^rd September 2022, Chancellor of the Exchequer, Kwasi Kwarteng delivered his mini budget statement, which he described as the “biggest package in generations” of tax cuts to send a clear signal that economic growth is the governments priority.

We look at the key housing points below:

Stamp Duty Cuts

Stamp Duty will be cut for property buyers in England and Northern Ireland, effective immediately (23^rd September 2022).

The cut, which Kwasi Kwarteng has said is ‘permanent’ means nothing will be paid for the first £250,000 of a property’s value, this is double the current threshold of £125,000.

The threshold for first-time buyers has increased from £300,000 to £425,000 and the value of the property on which first-time buyers can claim relief has also increased from £500,000 to £625,000.

The aim of the stamp duty cut is to encourage activity by homeowners, who will be more likely to spend money on home improvements after they move, boosting economic growth. However, this has been criticised, with many people suggesting the savings will instead be spent on rising energy bills and mortgage payments.

Energy Bills

In a bid to act against rising energy bills, the Chancellor has announced the government’s new ‘Energy Price Guarantee’ which will limit the unit price on electricity and gas bills of domestic customers, meaning the average cost of a household bill will be cut by an average of £1,400.

Vulnerable household will receive additional payments, but many have suggested that this does not go far enough to support people living with disabilities, who rely on life-saving equipment and warm homes to survive.

We discussed these fears in a previous article, which can be viewed here.

Liberalise Planning Rules in the hope of speeding up development in 40 Investment Zones

The Chancellor has promised that there will be no stamp duty on the purchase of land and buildings for commercial or residential developments in ‘Investment Zones’. Within these zones, planning rules will be loosened to in a bid to drive growth and housing as part of the government’s Levelling Up plan. Businesses located within these zones will also benefit from tax incentives. During his speech, he announced that the government is already in talks with around 40 local authorities in places such as the West Yorkshire to establish these zones.

This announcement has been met with much concern, as conservation groups worry about the environmental impact of relaxed planning rules.

The Department of Levelling Up, Communities and Housing is set to reveal more details later this autumn.