Earlier this month, Newham Council gave the first look at their Draft Budget for the 25/26 financial year. A consultation period with residents is now underway. Ultimately, the plan is to present the final Budget on 27th February to see if it gets approval. Before then, we want to look at some of the main points in the proposal. It could have an impact on various things, including investment properties in Newham.

Costs

One of the most important things in the Budget is the spotlight remains on the housing crisis in the city. Costs are continuing to soar for temporary accommodation. As a result, the local authority needs to plan carefully for how to cover the costs. It will ensure they can stop people from being homeless on the streets.

Another concern is the rising costs and high demand for social services. A huge 70% of the Council’s budget goes towards funding these essential services. It is an issue many councils are facing. Therefore, they need to be careful to plan budgets for child and adult social care.

Council tax increase

The most crucial piece of information in the Draft Budget for most people is the proposal to increase council tax. Newham Council wants to increase it by 10%. This would add £2.41 to the weekly cost for a Brand D household.

Increasing the council tax would help the local authority bring in more money to ensure they can provide essential services. Crucially, they claim the rise will still make Newham 7th on the list of lowest rates in London.

An increase in council tax would have an impact on all households in the borough. It could also make people reconsider their strategy to choose investment properties in Newham.

Savings

The Draft Budget also highlights how the local authority in Newham will look to save money. They are proposing savings of £32m for 25/26. This could help to reduce the funding gap from £175m to £157m.

Exceptional Financial Support

The Council is also planning to apply to the Government for Exceptional Financial Support. It will allow them to sell non-essential assets to help provide funding for day to day expenses.

Fairer Newham

While they are looking to save money, the Council did say they remain committed to their plans for Building a Fairer Newham. This includes working to improve the local economy, neighbourhoods, accessibility, inclusivity, and greenery. They will also still be working to deliver more affordable housing.

Work with experts to get the most from investment properties in Newham

Finefair Ltd can support investors with our exceptional range of services. We’ll adapt to cater for your needs, whether it is houses, apartments, estates, blocks, HMOs, or other assets. You can trust us to arrange solutions to manage the properties and more. Most importantly, we can offer guaranteed rent.

So, speak to us about any topic regarding investment properties in Newham. We’d love to work with you.