The Chancellor has been accused of using the recent house price rebound as an excuse to ignore calls to help first-time buyers and those in the Private Rental Sector (PRS).

Alistair Darling’s Pre-Budget Report (PBR) 2009 did not announce a hoped-for extension to the stamp duty holiday on properties worth less than £175,000. As a result, the tax will once again be levied on all homes worth more than £125,000 from 1st January 2010.

Homeowners at the top of the ladder were also hit hard by a total U-turn on a promised easing of inheritance tax rules. Contrary to a promise made in 2007 to increase the threshold at which inheritance tax is due in line with inflation, he is instead freezing the rate at the current level of £325,000 for an individual and £650,000 for couples. The individual level had been due to rise to £350,000 for individuals and £700,000 for couples in April 2010. The Government has estimated that the measure will generate £440 million in revenue for the Government between next year and 2013.

The U-turn will disadvantage an estimated 100,000 owners of properties worth more than £650,000 and less than £700,000.

In addition, wealthy homeowners were also hit by a package of anti-avoidance measures focusing on property taxes. All owners of homes worth more than £1 million who either do not pay stamp duty or pay a reduced rate will see details of the complicated vehicles they have been using passed to the Revenue. Meanwhile homeowners who have transferred property into trusts to minimise inheritance tax will no longer be exempt.

The Chancellor also announced that a consultation would begin early next year into the creation of a private rented sector with finance from institutional investors to provide homes to people who cannot get onto the housing ladder.

On Alistair Darling's Pre Budget Report Ian Potter, operations manager of the Association of Residential Letting Agents (ARLA), said:

"The Chancellor has pledged to help the housing sector and yet fails to deliver any initiatives that will make any real difference.
The private rental sector (PRS) is expected to shoulder the burden of the UK's housing shortage, yet any specific measures to help ensure enough high-quality housing for those who need it were severely lacking from today's PBR.

By failing to commit to extend stamp duty holiday the Chancellor is unfairly penalising those investing in buy-to-let portfolios, who have to pay Stamp Duty on the bulk price when individual buy-to-let investors pay a lower rate on the individual unit price. This acts as a disincentive on an important part of the sector.

We await with interest further details of the boiler scrappage scheme to see if there will be any real benefit to the PRS."

David Brown, commercial director of LSL Property Services welcomed the Government’s decision to keep capital gains taxes at the same rate in order not to damage vital funding to the private rental sector.

“On the face of it, it might look great value for the tax-payer that buy-to-let landlords should contribute more to the government’s coffers. When capital gains tax was cut to 18 per cent, it was not designed to help landlords, but it did make property investment a more attractive proposition. But, hiking up the tax-rate would have created a strong disincentive to investment in the private rented sector. At a time when there is a chronic shortage of housing stock to house our growing population, and no money to expand social housing, the private rental sector is a cornerstone of housing provision."

• Choose a Letting Agent who is fully bonded with a recognized national agency such as ARLA (Association of Residential Letting Agents).
• Look for a company with a documented set of procedures as to how they will Let and then Manage your Property. Some companies in the market place have the ISO9000 accreditation from the British Standards Institute.
• Are the Staff managing your property trained and qualified to a recognized industry standard? They should be!
• Find an Agent who will guarantee to pay the rent to you within 2 weeks of receiving it from your Tenant - any longer than this is wholly unreasonable.
• Make sure your Agent has information available to you on all your rights and responsibilities with regard to Safety Regulations and Fire & Furnishing Regulations.
• Jump on the information super-highway. Your agent should be looking to the future. Can your tenant pay their rent online? Can you check your statements online as well as receive instant messaging alerting you to possible problems at your property?
• Choose an established company that is large enough to provide confidence in its future and allow you to sleep easy at night.
• Periodic Inspections of your property are essential. Back this up by using a Letting Agent who provides a Video Inventory at the start and end of each tenancy.
• Find a company who can offer Rent and Legal insurance. If your Tenants fall into arrears, you need to be sure that your agent has a procedure in place to ensure that matters are handled immediately.
• Finally, look for friendly, efficient and helpful members of staff. Should the unfortunate happen, then you want to feel someone is there and helping you all the way.

The Government’s temporary cut in the rate of VAT to 15 per cent in 2009 will come to an end in January 2010, when the rate reverts back to 17.5 per cent.

From 1 January, all money payable to Lenwell will have the new rate of 17.5% VAT applied to it. Obviously, nobody likes to increase fees in January, but this increase is out of our hands and in no way benefits Lenwell.

There are however, exciting developments for later this month as Lenwell works closely with a software firm to develop certain APPS for I Phone users.

Whilst currently still at testing stage, the APPS will:

1. Calculate Rental Yields
2. Allow Tenants to pay their rent
3. Allow access to Lenwell’s Landlords Online area
4. Search for Property