2023 Autumn Statement Insights for Landlords

Chancellor Jeremy Hunt’s 2023 Autumn Statement contained little to cheer property investors.

Although millions of workers will benefit from cuts in National Insurance, the only measure directly impacting landlords is unfreezing Universal Credit.

Hunt will increase Local Housing Allowance to 30 per cent of nationwide rents from April 2024 as part of the deal.

It’s fair to say that lobbyists, housing charities, councils and landlords have been screaming for change for a long time, and the Chancellor has finally listened to the protests.

LHA has stayed frozen since 2020, with rates based on private rents in 2018-19, even though rent inflation has soared by an average of 3.71 per cent a year.

“Because rent can constitute half the living costs of private renters on the lowest incomes, I have listened to colleagues and many organisations who say unfreezing the LHA was an urgent priority,” said Hunt in Parliament.

“I will therefore increase the LHA to the 30th percentile of local market rates – this will give 1.6 million households £800 of extra support next year.”

Other minor legislation will make converting a single home into two homes easier.

Autumn Statement 2023 at a glance

Among the measures announced by the Chancellor as part of his Aumunt Statement 2023 were:

• The new state pension rises 8.5 per cent to £220.20 a week from April, while the old state pension goes up by the same percentage but is only worth £169.50 a week.
• National Insurance main rates fall by two per cent to 10 per cent from January 6, which is a saving worth around £450 a year for someone earning £35,200.
• Self-employed National Insurance rates change, along with thresholds
• Universal Credit unfrozen and to rise by 6.7 per cent in April
• Alcohol and fuel duties are frozen
• Cigarettes are up RPI inflation plus two per cent

Is an election on the way?

Many believe Chancellor Jeremy Hunt is clearing the decks for a general election in the spring.

Prime Minister Rishi Sunak must call an election before Christmas 2024, likely in May or June.

Sunak has cut the deadwood out of his cabinet, intending to recruit a winning team, while Hunt has done his best with the meagre funds he has available to promote good cheer with tax cuts.

The worry is whether the extra cash in people’s banks will stoke inflation.

In truth, little has changed for anyone earning £50,000 a year or more. This is a budget for renters and the poorly paid.

Autumn Statement 2023 - What the Chancellor said to MPs

Autumn Statement 2023 - Policy and background documents