Elementor #1775

The Chancellor Rishi Sunak is set to announce the budget for the 21-22 financial year on March 3rd. Here we discuss what this may mean for the housing market.


Stamp Duty Tax – The Stamp Duty Tax relief was implemented in July 2020 with the aim to make it more achievable for homeowners to move house. This has come as a relief to many and resulted in an unexpected ‘Housing Boom’ with transactions and house prices increasing throughout.

This relief is due to end on 31st March and during the budget, the chancellor will announce whether this will still be the case. Many companies and home owners have called for a 6-week extension to help the hundreds of thousands who are likely to fail to complete before the deadline.


Rental Help and The Eviction Ban – The current eviction ban is still in place, forbidding landlords from evicting tenants during the pandemic. The chancellor may well announce plans for how this ban will slowly ease out but more importantly, about any help that may be given to tenants who find themselves in rent arrears. Scotland and Wales have both already provided details of grants to help those with rent arrears and homeless charities in England have called for similar measures.

Failure of suitable help for tenants is likely to result in mass evictions and a rise in homelessness once the ban is lifted.


Capital Gains Tax – Hiking capital gains tax may be seen as a good way for the government to claw back some funds needed after a year of spending. It has been reported they could make over £14billion extra revenue by increasing capital gains tax.  However, the knock-on effect that this may have on the private rented sector is also a fear, by discouraging investment in property, supply will inevitably dwindle too.


The announcement will come on March 3rd and this year, any announcement is a possibility!

Demand rises for HMO properties

Mortgage lenders are reporting a rise in demand for HMO properties as the housing market starts to recover.


Demand for HMO properties appears to be rising amongst Landlords as the sector takes off again after a pause due to the coronavirus pandemic.

Mortgage lender Landbay have reported a rise in interest for mortgages in this sector. This increase in demand is leading to more specialist HMO loan options becoming available, as more lenders enter the market.  

Paul Brett of Lendbay said recently: “Demand for HMOs is growing from both tenants and landlords so this is definitely a market for brokers to take an interest in. Not only will HMO properties typically require larger mortgages resulting in higher proc fees for those placing the mortgage, most people investing in HMOs will be professional landlords, which means they are likely to be business minded and open to your advice.”

‘While HMOs are increasingly popular with young professionals, they are also a common property type for students. It offers more affordable accommodation, and the social aspect of shared facilities and space. Even with the current pandemic, many people are happy to be “locked down” with their fellow housemates, rather than live alone’ says Brett.

Overall in the UK Housing Market, sales are continuing to climb, , with the sector seeing particular interest from investors at the moment. According to data published by Hamptons International, rental prices also rose in October for the first time since the coronavirus pandemic began. 

Tenant demand is high and as more people choose to rent and HMO’s continue to provide a good option for young professionals and students alike. 

Mortgage lender ‘Foundation’ also reported a 46% increase in applications from landlords with three or less properties as well as a 23% increase in applications for small or standard HMO properties.

As a tangible and profitable asset, property always proves a popular investment, even in a changing market and HMO’s appear to be no different. 

Demand rises for HMO properties HMO Management Agency