Key Highlights from the Autumn Budget 2024

Transforming the UK Property Market

The Autumn Budget of 2024, presented by Chancellor Rachel Reeves, introduces measures aimed at increasing tax revenues and addressing housing affordability, with significant implications for property investors, landlords, and renters.

Increase in Stamp Duty on Additional Dwellings

The Autumn Budget of 2024, presented by Chancellor Rachel Reeves, unveils a comprehensive set of measures that promise to reshape the landscape of the UK property market in the coming years. One of the key changes is the increase in Stamp Duty on Additional Dwellings, set to take effect from October 31, 2024. This adjustment will see the stamp duty surcharge on second homes and buy-to-let properties escalate from 3% to 5%, a strategic move designed to curb speculative property investments and provide a boost to first-time buyers looking to step onto the property ladder.

Reduction of 'Right to Buy' Discounts

Another significant alteration outlined in the budget is the Reduction of 'Right to Buy' Discounts. In an effort to safeguard the availability of social housing, the government plans to slash the maximum discount under the 'Right to Buy' scheme from 70% to 25%. This measure aims to retain a higher number of council homes for rent, ensuring continued access to affordable housing for those in need.

Investment in Affordable Housing

Moreover, the budget earmarks £500 million for the construction of 5,000 new affordable and social homes, aligning with the ambitious target of building 1.5 million new homes by the conclusion of the parliamentary term. This investment in Affordable Housing underscores the government's commitment to addressing the pressing issue of housing shortage and affordability across the country.

Changes to Capital Gains Tax (CGT)

Furthermore, changes to Capital Gains Tax (CGT) are set to impact property investors and taxpayers differently. The CGT rate for higher-rate taxpayers is slated to rise from 20% to 24%, while basic-rate taxpayers will see an increase from 10% to 18%. Notably, residential property rates remain untouched, offering some respite to landlords when selling buy-to-let properties, as they are spared from additional CGT liabilities.

Employer's National Insurance Contribution

Additionally, the budget introduces an increase in the employer's national insurance contribution by 1.2 percentage points, a move that is anticipated to have repercussions on businesses operating in various sectors, including the property market.

Impact on Landlords and Renters

As the changes unfold, the impact on landlords and renters becomes a focal point of discussion. The escalation in CGT and stamp duty could prompt landlords to transfer the burden of additional costs to tenants through elevated rents, potentially exacerbating the affordability crisis in the rental market and posing challenges for renters seeking stable and affordable accommodation.

In conclusion, the Autumn Budget 2024 sets forth a series of measures aimed at bolstering tax revenues and tackling housing affordability issues head-on, with far-reaching implications for property investors, landlords, and renters alike. The dynamic shifts outlined in the budget signal a significant transformation in the property market landscape, underscoring the government's commitment to fostering a more sustainable and inclusive housing sector for all.