Experts Warn Of Effects Of Buy-To-Let Tax Changes On Affordable Housing

A government surcharge could lead to unexpected consequences for the affordable housing sector, as developers face a Stamp Duty Land Tax bill around 20% higher than pre-Budget levels. The higher duty for developers is re-focusing sales negotiations and often resulting in lower prices being paid for development land in an effort to spread the transaction costs between buyer and seller. February and March saw a surge in property transactions but, since the controversial three per cent surcharge on second home purchases was implemented in April, activity has slumped and there has been an increased trend of sellers reducing their property prices, or accepting offers up to 10% less than their original asking prices. The average house price in the UK has fallen to £212,321, down £1,624 on the month, and the annual pace of inflation has dropped from 10.1% to 9.2%.  Read more on the CCH website.

Internet Giant to Offer Cheap Broadband to Social Tenants

An internet giant has agreed to offer cut-price broadband specifically to social housing tenants in advance of the full roll-out of universal credit. Talk Talk will be the supplier for the reduced-price contracts for tenants, which will be offered and marketed by social enterprise Happus. The deal, which launches in June, will be £10.85 for the first six months, around 40% cheaper than its cheapest offer to other customers, rising to £19.20 thereafter. The price is based on research by the Connected Housing Initiative – a group of 13 social landlords aiming to increase internet access among tenants – which suggested this pricing would be affordable. Read more on Inside Housing.