Healey has raised property income rates up to 24%, 44% and 49%. A two-point rise…
The OBR thinks a steady long-term rise in rents as a result is “more likely than not”. It sees two ways this happens: fewer people become landlords, so rental supply shrinks. In addition, remaining landlords gain “price setting power” as others leave, and pass on more of the cost to tenants. It calls this 2-point rise, stacked on last year’s 2 points, “a material reduction in returns to private landlords”. It lists past changes that also cut returns: mortgage interest relief, the stamp duty surcharge, CGT allowances and the Renters’ Rights Act…
For that the Exchequer only gets about £400 million a year from 2028-29. The costing is rated “high” in uncertainty…
Healey is also raising tax on savings income rates up to 24%, 44% and 49%. Raising about £600 million a year from 2028/29 from prudent savers…
At the same time the OBR has massively downgraded its expectations for Labour’s housebuilding programme:
Robert Jenrick told a rally on Monday:
“They say Chancellors are either undertakers or bookies. This one is an ostrich – and when the Chancellor buries his head in the sand, the rest of us, we’re left staring at his you know what.”
