TPP209 What does the Spring 2017 budget mean for property investors

The spring budget brought no major changes for property investors, but Rob and Rob found some points of interest. They welcomed new team members at RMP and Yellow, and announced the creation of new free courses on The Property Hub. A news story about a potential 7-minute hover train journey between Liverpool and Manchester, which could reach speeds of 350 miles per hour, also caught their attention. However, it's important to note that the train is still in the planning stages and the likelihood of it coming to fruition is uncertain. The team also discussed the current employment situation in the UK, with employment at an all-time high and the team at Rob and Rob potentially contributing to it. They encouraged listeners to check out the free courses on The Property Hub, with a new one coming soon.

There are exciting proposals for a high-speed rail connection between major Northern cities like Liverpool, Manchester, Leeds, and Hull, which could significantly reduce travel times and boost economic growth in the region. However, the spring budget 2023 was underwhelming for property investors as Chancellor Rishi Sunak did not mention housing or propose any changes to stamp duty or mortgage relief. Instead, he confirmed the planned reduction of corporation tax for limited companies, which will ultimately result in less tax for individuals who invest in property through a limited company structure. This could be a positive development for the economy as a whole, but it remains to be seen how it will impact the housing market directly. Overall, the potential for improved transportation infrastructure and tax benefits for property investors are two significant developments to watch in the coming months.

The tax-free dividend allowance for company directors is being reduced from £5,000 to £2,000 starting from April 2018. This means that individuals and couples will have less tax-free income if they choose to draw dividends from their companies. This reduction comes despite the fact that dividend tax rates were increased last year to compensate for the loss of the dividend tax credit. Additionally, the deadline for landlords to keep digital records of their accounts and send quarterly updates to HMRC has been extended until 2019 due to a lack of readiness and education around the new requirements. Lastly, the government has announced plans to consult on redesigning Rent a Room Relief to better target it towards longer-term lettings, as the current system is being abused by those renting out rooms on a short-term basis through platforms like Airbnb. Overall, these changes may not be significant for everyone, but they could impact individuals and landlords who rely on dividend income or rent out rooms in their homes.

The 2023 budget was considered a boring one, but it could lead to positive developments for certain regions, specifically the Midlands, through the new "Midlands Engine" initiative. Although it currently lacks substance, the focus on regional growth is seen as a step in the right direction for economically strong areas like the Midlands, which have struggled with branding and attention in the past. Additionally, the property podcast recommended by Dan continues to be a valuable resource for both new and experienced property investors, providing insights on economic and political changes, legal updates, and complex topics in an accessible way.

The Property Hub offers a range of free online resources, courses, and community events, as well as monthly meetups, all designed to help individuals in their property investing journey. A crucial aspect of this journey is maintaining a good credit score, which can now be easily checked for free using tools like MoneySavingExpert's Credit Club and Experian. These resources provide valuable insights into credit reports and affordability scores, helping users understand how lenders view their financial situation. The Property Hub's team, along with their free resources and team behind the scenes, are essential in making these opportunities accessible to a wider audience. Regular reviews and feedback from the community are also encouraged and appreciated.

The cost of a popular property investment resource has dropped significantly, from over £15 a month to being offered for free. This change in tactics could make it an attractive option for potential investors. For more details, you can find the links to the relevant resources in the show notes for this week, which can be found at thepropertyhub.net/springbudget2017. If you're interested in learning more about this development, be sure to check it out. And don't worry, we'll be back with more informative content on our next podcast episodes, including Ask Rob and Rob on Tuesday and a more impactful property podcast on Thursday. Until then, have a great time and thank you for listening to The Property Podcast. For all our past episodes and to leave a review, visit thepropertyhub.net/podcast.