Budget Announcement

March 2010

The Chancellor has delivered the 2010 Budget to the House of Commons this afternoon; with a headline announcement of Stamp Duty relief for properties of £250,000 and under, until the end of 2011. The main items of interest for the NAEA, ARLA and ICBA are:

• A Stamp Duty Land Tax relief for first-time buyers, for residential property purchases up to £250,000 for this year and next;
• The introduction of an additional 5 per cent rate of Stamp Duty Land Tax for residential property over £1 million from 2011-12;
• The temporary freeze in the Standard Interest Rate used to calculate Support for Mortgage Interest payments has helped homeowners who have experienced a fall in income to remain in their homes. The Standard Interest Rate will be maintained at 6.08 per cent for a further six months until December 2010, benefiting around 220,000 homeowners;
• Targeted help via the Mortgage Rescue Scheme and Homeowner Mortgage Support will continue into 2011;
• There is little on the Private Rented Sector, although the Budget states that: "Similarly, the recent Government consultation, Investment in the UK private rented sector, invites industry to work with the Government to consider the contribution the private rented sector could make to addressing demand, housing supply and any barriers to investment. The Government is also taking forward a package of reforms to drive up quality and professionalism in the sector."
• The temporary increase in the threshold for empty property relief will be extended to £18,000 for a further year, continuing the exemption from business rates for an estimated 70 per cent of empty properties in 2010-11;
• A temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October. In addition, small businesses benefiting from the rate relief taper (rateable values up to £12,000) will receive significant reductions. It is estimated that over half a million businesses across England will benefit, many by well over £1,000. Around three quarters of all small business units, two thirds of smaller shops and over half of offices and smaller industrial premises will qualify if occupied by an eligible business.