New Government Initiatives And Legislation You Should Be Aware Of

With constant Government updates and new initiatives to support the property market through the COVID-19 pandemic, we want to ensure we are always highlighting every opportunity to our community.

Below we have outlined recent key changes to aid understanding and help you make difficult decisions in the current uncertain climate. We have also included useful links to where you can find out more information.

 

GREEN HOMES GRANT SCHEME

Announced as part of the Chancellor’s mini-budget, the Green Homes Grant scheme aims to reduce emissions and create jobs by subsidising the cost of improving energy efficiency in residential dwellings. Full details are yet to be announced, but the Government has set aside £2bn for this scheme and is hoping to facilitate improvements on 600,000 homes.

DETAILS

• Launches in September
• Applies in England only
• Covers two-thirds of cost up to £5,000 (different figures apply to low-income households)
• Applies to landlords and owner-occupiers
• Believed to apply to insulation and double glazing but not boilers; comprehensive list yet to be announced
• Apply for a voucher online
• Need a quote and work to be approved before voucher issued

For further information on the Green Homes Grant scheme, please visit Gov.uk

CHANGES TO PERMITTED DEVELOPMENT

The Government has published the new revisions to permitted development rights which allow for certain kinds of development without the need for a full planning application. Recent changes will allow for upwards extensions to create additional accommodation, as well as permit the demolition of vacant commercial buildings and their replacement with homes.

DETAILS

• Announced on 21 July, new legislation comes into effect on 31 August
• Upwards extensions: Four new rights allow for the upwards extension of buildings. These rights are subject to several conditions and do not apply either to listed buildings or to buildings in conservation areas
• Demolition and rebuilding: Of considerable interest is the right to demolish vacant buildings and replace them with new residential units. Again, these rights are subject to several conditions and do not apply in conservation areas or to listed buildings

For further information on the changes to permitted development rights, please click here to read our latest article.

REVISIONS TO THE USE CLASSes ORDER

In a sweeping reorganisation of an arguably elderly system, we have just seen the introduction of the most major changes to the use class system since it was created in 1987, which could have far-reaching consequences for our towns and cities. The new system offers much greater flexibility for building owners and could serve to support the high street into the 21st century, whilst also protecting community shops and pubs. But of course, there are risks.

DETAILS

• Announced on 21 July, new legislation comes into effect on 1 September
• A1, A2, A3, B1, D1 and D2 use classes will soon be redundant
• Use classes E, F.1 and F.2 will shortly replace the above retired use classes
• Use class E: This is the new ‘Commercial, business and services’ use class
• Use class F.1: This is the new ‘Learning and non-residential institutions’ use class
• Use class F.2: This is the new ‘Local community use’ use class 

For further information on the changes to the use classes order, please click here to read our latest article.

CHANGES TO STAMP DUTY

The Chancellor’s announcement that the stamp duty exempt threshold will be raised to £500,000 is welcome news for buyers and investors looking to purchase a property, and will likely inject a great deal of activity into the market. Following the announcement on Wednesday 8 July our internet enquiries have increased exponentially.

• Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive
• Buyers purchasing their main residence under £500,000 will pay no stamp duty (0%)
• The next £425,000 (the portion from £500,001 to £925,000) will be taxed at 5%
• The next £575,000 (the portion from £925,001 to £1,500,000) will be taxed at 10%
• The remaining amount (the portion above £1,500,000) will be taxed at 12%
• The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021
• Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.
• As it stands on the 1 April 2021 the reduced rates shown above will revert to the rates of SDLT that were in place prior to 8 July 2020 

For further information on the changes to stamp duty, please visit Gov.uk.