The Chancellor may have largely ignored housing in yesterday’s Autumn Statement but key measures should help landlord and provide support for the housing market, according to property analysts.

The announcement of a consultation into new permitted development rights — which will allow one house to be divided into two flats, provided the exterior remains unchanged — should be good news for property investors, and will help meet ongoing demand for rental accommodation, according to Redmayne Smith managing director Abi Hookway. 

The company also welcomed the announcement that the Chancellor will invest £1bn to ensure that local housing allowance (LHA) rates will cover the bottom 30% of market rents for the first time since 2020. Hookway says this means more landlords can rent to those receiving LHA or offer social housing solutions and provide accommodation for renters across the nation.

Hookway said that self-employed landlords will also benefit from national insurance rate cuts, which have abolished class 2 NI payments. Hookway says this will effectively save self-employed landlords £350 a year, and is to be welcomed, given the additional tax burden faced by landlords as a result of section 24 of the Finance Act 2014.

Redmayne Smith also pointed to “more good news” with the announcements that the   95% mortgage guarantee would be extended for a further 18 months. This was due to end this year and will provide additional support for first time buyers who are looking to get on the property ladder. The guarantees means first time buyers and current homeowners can purchase properties up to £600,000 with a 5% deposit on both new build and existing homes.

However others have pointed out that there has been no move to relax the affordability restrictions on this guarantee, with only loans set at a maximum of 4.5 times income qualifying for the scheme.

Nationwide Building Society said it was “disappointed” that this wasn’t extended as this limitation continue to restriction and research shows most homes remain unaffordable through the scheme. 

However Hookway said that taken in the round these various announcement should bolster confidence in the property market: “Despite the economic downturn, the property market remains resilient, and our clients are still investing in the UK property market as it offers real value, especially with the high demand for rental accommodation.”