The UK Autumn Budget 2024, presented by Chancellor Rachel Reeves, outlines significant policies to reshape the property market, with special attention to housing affordability, investment regulations, and social housing reforms.
A core announcement in the 2024 Autumn Budget is the increase in Stamp Duty Land Tax (SDLT) by 2% on additional property purchases, such as buy-to-let investments and second homes. The new SDLT rates intend to deter speculative investments, thereby creating more opportunities for first-time homebuyers in a highly competitive market.
Despite speculations, the Capital Gains Tax (CGT) on property sales remains untouched, focusing changes on shares and other asset types. Property investors still maintain their current CGT obligations, which may encourage continued investment in housing.
To address housing shortages, Labour has committed £3.1 billion towards building 1.5 million new homes over the next five years. Another £3 billion will target support for smaller and mid-sized developers, helping them bring new properties to market more quickly. By increasing housing availability, the government hopes to balance high demand with sufficient supply, aiming to stabilize prices and improve accessibility for first-time buyers and renters.
The budget also highlights a strong commitment to expanding social housing. Local authorities will have more flexibility in housing projects, and the government will reduce the Right to Buy scheme’s discount rates, allowing proceeds from Right to Buy sales to be reinvested in affordable housing development. These measures are designed to create long-term affordable housing solutions for low-income families and individuals.
In line with net-zero commitments, the budget also includes additional incentives for eco-friendly housing upgrades. Homeowners investing in energy-efficient improvements may benefit from tax reliefs, supporting the government’s sustainable housing initiatives and encouraging energy efficiency in the housing market.
These announcements reflect Labour's approach to fostering a balanced, accessible, and environmentally conscious property market in the UK. With more opportunities for first-time buyers, increased support for social housing, and initiatives to encourage sustainability, the Autumn Budget 2024 aims to create a property market that meets the demands of a growing population while remaining financially accessible and sustainable.
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