Budget - March 2012

March 2012

Help in Buying Property

"New Buy" was launched early in March 2012 making mortgages available for people to buy a new home with a 5% deposit. Provision has been made to support up to 100,000 households through the scheme. The government has announced a reinvigorated right to buy scheme for tenants in council housing. From 2 April 2012 the current range of regional caps on discounts will be replaced by a higher single cap of £75,000.

Commercial Property

With effect from April 2012 capital allowances available to purchasers of fixtures will now have to follow a new statutory mechanism. The reduction in rates has not been mentioned in the Chancellor's speech but is contained with the overview of tax legislation and rates. The Business Premises Renovation Allowance will be extended for a further five years to April 2017.

Property Values

Government calculations published with the budget anticipate that residential property prices will start to rise from 2013-14 onwards and the volume of residential property transactions will significantly increase from the same point in time; likewise there will be a robust increase in commercial property prices forecast from 2013-14 onwards.