The recent Autumn Budget introduced some significant changes for housing, property investment, and taxation. We have put together a few of the main changes, which may affect your decision-making over the coming years.
Housing and Property
• Enhanced tax relief on energy-efficient upgrades including insulation, solar panels, and heat pumps
• Stamp Duty Changes and Agricultural Land Modifications
• The increase in the Stamp Duty surcharge for second homes. From 31 October 2024, this rate will rise from 3% to 5%
• Stamp duty has been introduced on agricultural land purchase
• The current elevated stamp duty thresholds for first-time buyers and home movers, set by previous government, will revert to back
• From 31st March 2025, buyers will now have to pay Stamp Duty on purchases above £125,000 (reduced from £250,000). For first-time buyers, it will decrease from £425,000 to £300,000.
There is some good news, the current IHT relief on agricultural land is being maintained, continuing to make rural and agricultural estate investments appealing
Revised Property Disposal Rates
• Property disposals - the main rates of Capital Gains Tax for non-residential property disposals increase from 10% and 20% and from 18% and 24%
Inheritance Tax
• Pension funds now fall into Inheritance Tax (IHT) calculations
• IHT on Farms - from April 2026, inherited agricultural assets worth more than £1m, which were exempt, will be subject to IHT at 20% - half the usual rate
Current Market Trends
In our area, the market has shown some sensitivity to the fear of what the Budget was going to hold. Whilst there were a few less than welcome surprises, the consensus is the it could have been much worse. As a result, we expect buyers to stop “sitting on their hands” and move forward with decisions, now they have some firm knowledge on which to base those decisions.
We believe there will be further good news over the next few months with interest rate cuts, which should should help to stimulate those that have been biding their time to put their best foot forward - particularly at the lower end of the market where mortgages are most common, and the Stamp Duty changes coming in at the end of March will create an urgency in the Spring Market. Whilst our clients here at Jackson-Stops tend to be at the middle to higher end of the market, without activity in the 'foundations', the sectors above will suffer.
For financial advice on how these changes affect you, please contact Ryan Garbett at Private Finance on 01743 213 097.
Selling your home should not be rushed and taking professional advice both about your current home and your search, in advance of a decision, will put you in the best place to make a successful move, when the time comes. Even if you are not ready to contemplate a sale, but it is something that you will be considering within the next few years, please give us a call.
• Property professionals regulated by RICS
• Bespoke marketing packages and brochure / video productions
• Extensive social media and online presence
• National database with access of nearly 30,000 active applicants
• 40 offices with six in London and three in the North West
Contact us today on 01244 328361 or email [email protected].
We can also put you in touch with reputable and recommended solicitors who can assist with some of the inheritance planning, these changes might require.
