Autumn Budget 2024 (2 minute read)

The UK Autumn Budget 2024, presented by Chancellor Rachel Reeves, includes significant changes affecting the property market and taxation, impacting landlords, homeowners, and potential buyers alike.

Property Market Impact: The government has announced targeted support for housing supply, with funds allocated toward developing affordable housing and brownfield site regeneration. This includes measures to streamline the planning process, encouraging faster approval for residential projects and helping increase housing supply in urban areas. However, there’s a notable increase in Stamp Duty on second homes, raised from 3% to 5%, which could curb the expansion of buy-to-let portfolios. This measure is expected to reduce speculative buying, potentially easing some pressure on property prices but also possibly constraining rental supply, leading to further rent increases in certain regions​.

Capital Gains Tax (CGT) Changes:  CGT for higher-rate taxpayers has risen from 20% to 24%, however residential rates remain at 18% and 24% respectively.

Green Initiatives: The budget also includes energy efficiency grants to help landlords upgrade properties to meet future minimum EPC ratings, especially with a targeted EPC C rating by 2030. These grants could offset some regulatory compliance costs for landlords while supporting broader environmental goals​.

In summary, the budget’s property-related measures appear to aim at creating a fairer landscape for first-time buyers and renters, though the increased tax burdens on landlords could lead to unintended pressures on the rental market.