What Does The Autumn Statement Mean For Landlords And Tenants?

The Autumn Statement has introduced several changes that for landlords and tenants at least should alleviate some of the pressures that the sector has been facing, in terms of rising rental costs, issues around affordability and a lack of housing supply.

These three factors have had a huge impact on the market in the last year or so and the Government seems to have recognised this with some of the announcements in the Autumn Statement. But what does it really mean for you if you are a landlord or tenant?

More Support For Tenants

One of the biggest impacts for you as a tenant will be the increase in financial support to help to cope with the increased rents witnessed this year thanks to a lack of housing supply and higher mortgage rates for landlords driving up prices.

The government announced several National Insurance changes which give some reprieve in terms of extra cash in the pocket, but it’s the wider announcements around housing benefits and mortgage support which will be of most interest to many tenants, particularly those who are also looking longer-term to get on the property ladder.

One of the major announcements for struggling tenants was the lifting of the existing cap on Local Housing Allowance to the 30^th percentile of local market rents. The government has estimated that this will give 1.6 million households an extra £800 in their pockets as a result.

If you are a tenant looking to move onto the housing ladder then the extension of the Mortgage Guarantee scheme, which is designed to help first-time buyers and those with low deposits, is also significant. Already extended by 12 months this time last year, the scheme had been due to close to new accounts at the end of 2023 but has now been extended to June 2025.

Greater Housing Availability

The Autumn Statement also revealed various initiatives and investments to speed up planning backlogs to get houses built more quickly. Although the impact of this is less immediate for you if you are a tenant or landlord it will serve to ease some of the pressure on the rental market, bringing down rental demand and paving an easier route for purchase for those looking to buy.

Increased Assurance For Landlords

For landlords, meanwhile, the additional financial support will be welcomed since landlords have faced high levels of rental fraud, as well as the greater risk of rent arrears this year, from tenants struggling to pay.

As a landlord you are also likely to be encouraged by the announcement of a promised consultation into a new Permitted Development Right, allowing houses to be divided into two flats more easily providing the exterior remains unaffected. It’s hoped this will come into force next year.

We Can Help

At Progressive Lets we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We work with landlords of all sizes, including those who are just starting out and who need advice on compliance issues or who want us to manage properties on their behalf. Get in touch to find out more.