Key Highlights

Each year the UK government reveals the fiscal planning for the coming year or years ahead. For 2024, the Autumn October budget is highly anticipated as it is expected that it will have a significant impact on the property investment industry. Speculation has been heavily spurred on the fact that the UK’s finances have a £22 billion gap, so whatever measures announced could affect the property industry in multiple ways.

The Autumn Budget could bring both challenges and opportunities for property investors, making it essential to stay informed about any changes.

What Could Change?

Capital Gains Tax

One of the most anticipated changes is a increase in Capital Gains Tax (CGT) rates, which could rise to align more closely with income tax rates. This could see CGT rates rise to 18% for basic taxpayers and 28% for higher taxpayers. For property investors, this could mean higher taxes on the sale of investment properties. Going forward, it would be optimal for investors to reassess portfolios and see where they could minimise additional costs.

Housing Targets

It is also expected that the budget will cover initiatives to meet Labour’s high targets of building housing and their commitment to regeneration. This could benefit investors interested in large-scale development projects or build-to-rent schemes, as the government aims to ease planning restrictions and encourage brownfield development. Such policies could stimulate new construction in key areas, which would drive up property values​.

These policies could have a lot of valuable opportunities for property investors who are interested in build-to-rent schemes or anyone looking to invest in large-scale development projects. With the government prioritising the creation of more homes, particularly in urban areas, the value of property in regions benefiting from regeneration efforts could rise, offering long-term returns for investors​.

Green Policies

With green policies becoming a core focus of a number of parties recently, not just Labour, it is also anticipated that there will be a push for energy-efficient improvements to properties, as stricter Energy Performance Certificate (EPC) regulations are expected.

Of course, this is expected to be costly, so to potentially help landlords meet these costs, the government could introduce grants or tax relief to encourage landlords to invest in energy-efficient renovations. While this could mean short-term costs for investors, properties that meet the updated EPC standards are likely to become more attractive to tenants, which would increase rental yields in the long run​.

Property Tax Reforms and Council Tax Adjustments

Another significant area of interest is any upcoming changes to property taxes, including council tax. Some reports suggest that the government could introduce a flat-rate council tax system based on property values, replacing the current banding system. This could lead to higher council tax bills for more expensive properties but might benefit those with lower-value homes​.

Rental Yields and Property Demand

Policies designed to make housing more accessible could have a knock-on effect on the rental market, as more affordable housing options could lead to increased demand for both private rentals and affordable homes. Investors in the rental market should keep an eye on these developments, as shifting government policies could impact rental yields.

Any incentives for developers to build affordable housing could open up new opportunities for investors to target a broader segment of renters, particularly young professionals and families looking for cost-effective homes. This could further fuel demand for properties in areas where housing shortages are most acute, driving up property values​.

Summary

This year’s autumn budget is expected to come with some big changes – some positive and some challenging. While higher taxes could impose short-term setbacks, government initiatives have the opportunity for long-term investments for those who want it. improvements could offer long-term opportunities for those looking to invest strategically. Whatever comes, it’s important to stay as up to date as possible of any changes and how they can impact you and your assets.

About Us 

North Property Group is a premium property investment agency and lettings agency focusing on premium UK real estate. We are a team of experts dedicated to finding you the best opportunities and guiding you through the investment lifecycle. We have in-depth knowledge of the property market and policy changes within the industry, so we can help guide and advise as the UK government unveils its new budget.

Book a free consultation with us today to start your journey of investing in off-plan UK property.