Key Highlights

Today, Chancellor Rachel Reeves delivered the first Autumn Budget since Labour’s election earlier in the year. The report had been highly anticipated by many, heavily spurred on the fact that the UK’s finances had a £22 billion gap. 

Announcements from this budget could massively impact buy-to-let investors, with both opportunities and challenges. It’s really important to stay informed. 

Here’s a look at what we expected, what actually happened, and what it all means for property investors moving forward.

Key Takeaways from the Autumn Budget 2024 for Property Investors

Here’s a quick look at the most relevant budget changes for property investors:

• • 5% Stamp Duty on Second Homes: Stamp Duty for those purchasing second homes will increase to 5%. This is a significant rise in upfront costs, so buy-to-let and second-home investors will need to budget more for acquisitions.
  • Capital Gains Tax on Second-Home Sales: For basic taxpayers, CGT rates have risen to 18%, and for higher taxpayers this has risen to 28%. The new rates match residential proeprty rates, which have remained the same. 
  • Shifted Focus to Primary Residences: The budget shows a clear priority for first-time buyers, which could create a more balanced housing market.
  • Rental Market Impact: With higher costs for landlords, rental rates may adjust to reflect these expenses, potentially increasing rental yields in areas with strong demand.

Key Budget Changes – Predicted and Delivered

1. 1. Stamp Duty Increase on Second Homes
      As predicted, stamp duty on second homes is increasing to 5%, starting tomorrow. This change aims to make the market more accessible for first-time buyers by reducing competition from investors, especially in high-demand areas.
   2. Capital Gains Tax (CGT) Adjustments
      A rise in capital gains tax was another expected adjustment, however residental property rates remained the same.
   3. Mortgage Reforms for Borrowers
      The budget also introduced measures aimed at mortgage affordability and stability, indirectly supporting investor confidence. 

What should investors do next?

To make the most of these budget-driven changes, landlords should take a proactive approach.

• • Reassess Rental Pricing: With increased demand, review your rental rates to ensure you’re aligned with the market and maximising returns.
  • Consider Refinancing: If new mortgage measures bring better terms, it may be worth consulting a financial advisor to explore refinancing, freeing up capital or securing improved rates.
  • Focus on High-Yield Locations: For those looking to expand, city-centre locations and high-demand rental areas may offer optimal returns despite the increased costs. 
  • Lean on Expertise: Working with a property investment specialist can make navigating these market changes much easier. We’re here to support you with tailored guidance, whether you’re planning your next investment or optimising your existing portfolio.

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.