Redrose Estate’s Essential Autumn Budget Insights
Redrose Estate Agent’s Expert Analysis
The recent Autumn Budget announcement by Chancellor Rachel Reeves has generated widespread interest, marking Labour’s first budget in over a decade. In light of ongoing cost-of-living pressures, there has been considerable anticipation over what these budgetary decisions will mean for the housing market. Here at Redrose Estate Agent, we’re here to help you navigate the key takeaways and what they mean for homebuyers, renters, and landlords alike.
Housing and Affordability: A Step Towards Supporting Buyers
The Budget responded with a substantial investment of £5 billion towards housing, reinforcing Labour’s commitment to creating affordable and accessible homes. A significant £500 million boost to the Affordable Homes Programme aims to help bring housing projects like Liverpool’s Central Docks to life, where plans are underway to build 2,000 new homes and revitalize the waterfront area.
Additionally, a targeted initiative with £25 million allocated for creating 3,000 energy-efficient homes across the country demonstrates a continued focus on sustainability. This new housing, planned to be 100% affordable, is an encouraging step towards addressing both affordability and energy efficiency.
Capital Gains Tax and Mortgage Schemes: What’s Staying the Same?
In an effort to maintain market stability, Capital Gains Tax (CGT) on residential property remains unchanged. This is particularly notable for landlords, who may have anticipated increased tax on income generated from rental properties. Meanwhile, a new discussion has begun about making the Mortgage Guarantee Scheme permanent. This scheme, which supports lending at 95% loan-to-value, would help more first-time buyers secure mortgages with a smaller deposit, potentially easing the path to homeownership for many.
The Future of Stamp Duty: Upcoming Changes and Their Impact
Stamp duty was another focal point, with some changes impacting those looking to purchase additional properties. Notably, the stamp duty surcharge for second homes will increase from 3% to 5% on 31 October 2024. According to the Rightmove property expert, Tim Bannister, landlords purchasing second homes will face an additional cost, which, on an average-priced property, could mean an extra charge of over £7,000.
For first-time buyers, current stamp duty relief thresholds remain unchanged until March 2025, after which these are expected to decrease. Here’s what this could mean in real terms:
- For first-time buyers, the threshold will drop from £425,000 to £300,000, potentially resulting in a £3,538 stamp duty charge on an average-priced UK property of £370,759.
- For home-movers, the stamp duty-free threshold will fall from £250,000 to £125,000. Buyers purchasing above this amount could face up to £2,500 more in stamp duty.
With property transactions averaging 152 days to complete, first-time buyers who want to benefit from current stamp duty relief should consider acting swiftly to avoid the higher charges after March 2025.
Final Thoughts: How to Navigate These Changes – Redrose Estate’s Essential Autumn Budget Insights
At Redrose Estate Agent, we recognise that these changes may impact each buyer and landlord differently. The potential increase in costs could prompt a rush in transactions as buyers look to finalise their purchases before new thresholds take effect. However, the long-term government investment into affordable housing and energy-efficient homes is a positive signal, indicating an ongoing commitment to creating sustainable housing opportunities.
For those planning a move, the key takeaway is to stay informed and proactive. If you’re a first-time buyer considering entering the market, the next year might be the ideal time to secure your dream home before thresholds shift. And for landlords, keeping an eye on these changes could help in making informed decisions for future investments.
Our team at Redrose is here to provide clarity and guidance as you navigate these updates. If you’d like personalised advice or support with your property plans, don’t hesitate to reach out to us. The market is ever-evolving, and with Redrose, you’ll have a trusted partner every step of the way
If you’re thinking of selling your property and want to ensure it stands out in the market, get in touch with Redrose Estate Agents today. We’re here to help you every step of the way!
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Redrose Estate’s Essential Autumn Budget Insights