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What The Budget Means for you

The Chancellor Rachel Reeve’s 2024 Autumn Budget was delivered yesterday after much anticipation and speculation. She announced a range of measures aimed at bolstering the UK property market, addressing housing shortages, and dealing with affordability issues for different types of buyers and homeowners. Whether you’re a first-time buyer, home mover, landlord, or current homeowner, here’s a breakdown of what this year’s budget means for you.

1. First-Time Buyer Support: Extended relief on Stamp Duty and new grant programs for first-time buyers.

What this means: For first-time buyers, these changes could make the dream of homeownership more attainable. Lower stamp duty and deposit assistance make it easier to save and manage the upfront costs, particularly for younger buyers who may struggle with high rental expenses and rising living costs.

2. Increased Capital Gains Tax for Buy-to-Let and Second Homes: A rise in capital gains tax (CGT) for landlords and owners of second homes.

What this means: These changes are good news for home movers. With the energy efficiency grant, home movers can reduce costs related to necessary upgrades, and stamp duty adjustments may provide slight relief for bigger transactions.

3. Energy Efficiency Grant Extensions: Expanded grants for energy efficiency improvements for existing homes.

What this means: For landlords, the increase in CGT makes selling less profitable, which may discourage some investors from buying additional properties or entering the market altogether. However, those willing to invest in energy upgrades can benefit from government grants, potentially increasing rental yields and property values in the long term.

4. Mortgage Interest Relief Extension: Extended relief on mortgage interest for new homeowners facing rising interest rates.

What this means: The extended mortgage interest relief provides much-needed stability for homeowners facing higher mortgage costs due to recent rate increases. Additionally, energy efficiency grants offer an opportunity to improve property value and reduce living costs, aligning with broader environmental goals.

Whether you’re considering your first home, planning a move, or reviewing your buy-to-let portfolio, the 2024 budget has introduced important considerations. First-time buyers may find it easier to get on the property ladder, existing homeowners gain support in managing mortgage costs and energy upgrades, while landlords face higher CGT costs and tougher regulations. If you want to discuss your options, contact us today.

Annabelle Bezant, October 2024

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