The Potential Impacts of the Autumn Budget 2024 on the Property Market
The Autumn Budget 2024 is just around the corner, and there are some big changes expected that could shake up the property market
The Autumn Budget 2024 is just around the corner, and there are some big changes expected that could shake up the property market. While we’re waiting on the official details, there are already a few key areas we think will affect property owners, buyers, sellers, landlords, and investors. So, let’s break down what might be coming and how it could impact you.
1. Stamp Duty Land Tax (SDLT) Changes
One of the likely announcements in the budget is a 1% increase in the Stamp Duty Land Tax (SDLT) surcharge for overseas buyers. This would make buying UK properties pricier for foreign investors. But for UK buyers, this could mean less competition, giving domestic buyers a better shot at snapping up the properties they’ve got their eye on.
2. Council Tax Revaluation
There’s talk of a council tax revaluation, which could see higher council taxes for properties that have seen big increases in value. This might affect affordability, especially in high-demand areas where property prices have surged.
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3. Mortgage Rates Update
Mortgage rates have been on a bit of a rollercoaster in 2024. After a period of lower rates, we've seen a slight uptick recently as lenders react to shifts in the financial markets. While five-year fixed rates are still competitive, they’ve crept up compared to earlier in the year.
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4. Inheritance Tax (IHT) Reforms
Another thing to keep an eye on is inheritance tax (IHT). There’s talk of simplifying the IHT rules, possibly removing the Residence Nil Rate Band or tweaking the main Nil Rate Band. This could mean a higher tax burden for larger estates. So, if you’re planning to pass down property or assets, it’s worth staying ahead of these potential changes.
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5. Capital Gains Tax (CGT) Reforms
Capital Gains Tax (CGT) might also be on the table for reform, with potential changes that could align CGT rates with income tax. For investors, especially those with large property portfolios or private equity, this could mean heftier tax bills.
6. Increased Rental Market Demand
With some buyers potentially finding it harder to break into the market due to tax changes or affordability issues, we might see an uptick in demand for rental properties. This presents a great opportunity for landlords and property investors who are looking to expand their rental portfolios.
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7. Non-Dom Tax Regime Reforms
Big changes could be on the horizon for non-dom taxpayers, with a shift towards a residence-based system from April 2025. For foreign investors with UK property portfolios, this could have a major impact on how they structure their estates and handle their tax planning.
Conclusion: What This Means for You
The Autumn Budget 2024 is shaping up to be a game-changer, with possible changes in stamp duty, inheritance tax, and capital gains tax that could impact everyone from first-time buyers to seasoned investors. The good news? You don’t have to navigate these changes alone.
Whether you’re looking to buy, sell, or invest, avocado property is here to guide you every step of the way.
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