The government’s 2024 Autumn Budget introduces key changes that will shape the property market in the coming months. Whether you’re buying your first home, investing in a rental property, or selling, understanding these updates will help you make informed decisions. Here’s what you need to know:

1. Higher Stamp Duty for Additional Properties

From October 31, 2024, the surcharge on second homes and buy-to-let properties has increased from 3% to 5%. This means higher costs for landlords and investors. For example, on a £300,000 property, the Stamp Duty would now be an additional £6,000 compared to the previous rate.

If you’re in the middle of buying an additional property, it’s essential to act quickly or consult your property lawyer to review how this impacts your plans.

2. Changes for First-Time Buyers

The current Stamp Duty relief for first-time buyers on properties up to £425,000 will revert to £300,000 in April 2025. If you’re a first-time buyer, completing your purchase before this deadline could save you thousands. For instance, after the change, buying a property worth £400,000 could cost you up to £5,000 in Stamp Duty.

3. Affordable Housing and New Opportunities

The government has allocated £3.1 billion to create more affordable homes, such as energy-efficient housing. This could provide new opportunities, especially for first-time buyers or those seeking sustainable living solutions. These developments may also offer unique incentives, making it vital to work with a property lawyer who understands the schemes available.

4. Impact on Landlords and the Rental Market

Although there’s no change to Capital Gains Tax on property sales, the combination of higher Stamp Duty and increased regulatory costs may lead to fewer rental properties on the market. If you’re a landlord considering selling or expanding your portfolio, we can help you navigate these changes smoothly.

How we can help

Our experienced property team are here to provide tailored advice on how these changes affect your plans, ensuring your property decisions – whether buying, selling, or investing – remain aligned with your goals.

Get in touch to ensure your property journey is as seamless as possible amid these changes. Email property@tvedwards.com or call 0203 440 8000.

Please note that while we provide expert advice on property matters, we are not tax experts. Any information or guidance we offer related to tax issues, including Stamp Duty, Capital Gains Tax, or inheritance tax, should not be considered a substitute for professional tax advice. We recommend consulting with a qualified tax advisor or accountant for tailored advice specific to your individual circumstances.

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.