Published: 04/11/2024

The Labour Budget  

Like many we were watching and waiting for the Budget detail to be announced, and wondering how it might affect property buyers, sellers, landlords and renters.

Here is some information we think you will find useful.

First Home Savings Account  

One of the key policies within the Budget was the expansion of the First Home Savings Account. This tax efficient savings scheme will allow first time buyers to accumulate up to £40,000 towards a deposit, which is a substantial increase from the previous £30,000 limit.

This will give first timers support in getting onto the housing market, which will make homeownership more accessible for the younger generation.

Stamp Duty  

Stamp Duty rates are increasing for second home/additional properties. From 31st October they will rise from three percentage points higher, to five percentage points above standard rates.

Although not mentioned in the Budget, there are further changes due to stamp duty from 1st April 2025. These will likely affect all homeowners, including first timer buyers, home movers and second home buyers, as:

• The Stamp Duty threshold will drop from £250,000 to £215,000
• First time buyer stamp duty relief will drop from £425,000 to £300,000

Affordable Housing  

There will be £500 million in funding towards 5,000 new affordable social homes. The Government are looking to give a significant injection of funding for affordable housing projects.

There is also the Help To Save scheme which is backed by the government, giving low earners a savings boost.

Capital Gains Tax  

Capital Gains Tax for residential homes is to be held at current rates for 18% and 24%. This tax is payable on any profit made by value increase of an asset, such as a property, after you sell.

Inheritance Tax  

It was announced there is an extended freeze on increases to inheritance tax until 2030. Inheritance Tax is charged at 40% on the value of estates above £325,000.

Green Homes  

The Government are encouraging more energy efficient constructions, with large tax breaks for developers and homeowners who embrace more sustainable buildings. Buyers who are environmentally conscious may need to be willing to pay more for properties with the latest eco friendly technologies, and sellers, in turn, will need to look at investing in their homes bringing them up to date with energy efficiency standards if they want to attract buyers.

Navigating your way  

Feeling unsure how these changes might affect you? Whether you are looking to buy your first home, or secure a rental property, please reach out to us. We look forward to hearing from you. Contact us here.