A BRIDGWATER lettings agent has reacted to the Autumn Budget, calling the policies outlined by the Labour government ‘short-sighted’. 

Andrew Lee, of Andrew Lees Lettings, spoke to the Bridgwater Mercury about the potential implications of the Budget for housing in the area.

He said: “The government has single-handedly driven up rental prices. I think the government should be looking to increase supply for all types of housing, as at this moment in time, there is a real shortage of rental properties.”

Andrew continued: “Stamp duty on the purchase of second homes will hit landlords who let properties. From Thursday 30 October, the higher rate paid on additional properties will rise from 3% to 5%. This additional 2% will discourage additional purchases and drive-up rental prices.”

There was speculation that the government might cancel a planned cut in residential stamp duty thresholds in March 2025, but did not happen. Stamp Duty Land Tax raised £15.4bn for the government in the 2022/23 financial year, external, a 9% increase on the £14.1bn raised in 2021/22.

Andrew added: “We are already in a situation where we’ve got so much demand that it is driving up rental prices. If you had 100 properties, you’ve got 76 enquiries per property. Demand is outweighing supply.”

He continued: “Interest rates have gone up where landlords have come out of fixed rates, and now they can’t even wipe their face. It all looks good, but the reality is the cost.”

“I always tend to find that whenever government intervenes in housing, it makes it more expensive for purchasers and those constructing the houses.”

Andrew also offered his view on the rise in National Insurance contributions for employers. He said: “We’ve always paid our staff well. But the government is biting the hand that feeds. It makes it harder to give a 5% pay rise to employees, as costs increase.”