2024 Autumn Budget – what it means for the property market

The 2024 Autumn Budget, recently delivered by Chancellor Rachel Reeves, outlines the government’s financial plans for the year ahead, focusing on tax policies, public spending, and investment. This annual announcement is a crucial indicator of the UK’s economic direction, affecting everything from household finances to the wider property market.

Part of this year’s Budget includes changes that will impact property buyers and sellers. Whether you’re looking to move, invest, or sell, understanding these updates is essential to making informed decisions in the current market.

If you’re considering moving take some time to explore our available properties in Wimbledon, Wimbledon Village and the surrounding areas. For any questions that you may have regarding property contact us today. If you would like a free Valuation of your own property please visit our website here or call us on 020 8971 6780.

What the 2024 Autumn Budget means if you’re looking to buy and/or sell…

Upcoming changes to first-time buyer Stamp Duty Land Tax relief

First-time buyers currently benefit from Stamp Duty Land Tax (SDLT) relief on properties up to £425,000 with no Stamp Duty due on property up to this value (brought in by the government in 2022 as a short-term relief). After 31st March 2025, the threshold will drop back to property up to the value of £300,000 (pre-2022).

For all buyers, the first £250,000 remains exempt from SDLT until 31^st March 2025 (when the threshold will drop back to £125,000). Stamp Duty is currently tiered: 5% for properties from £250,001 to £925,000, 10% from £925,001 to £1.5million, and 12% for properties above £1.5million. We have started to see demand from buyers looking to benefit from the current relief before the deadline of 31^st March 2025, so now could be a good time to list your property if you’re looking to sell.

Increase in Stamp Duty for additional properties

A key change in the 2024 Autumn Budget is the increase in the Stamp Duty Land Tax (SDLT) surcharge for additional properties. As of 31^st October 2024, the surcharge has risen from 3% to 5%. This means buying a second home or investment property will now come with higher upfront costs.

For those planning to sell, it’s crucial to consider how these changes might influence buyer behaviour, especially when it comes to pricing your property. Second-home buyers and buy-to-let investors may become more budget-conscious, making accurate and competitive pricing even more important to attract interest. While the higher costs may seem daunting for buyers, it’s important to view property as a long-term investment, where the potential returns are likely to outweigh the initial expense.

No changes to Capital Gains Tax

The absence of changes to Capital Gains Tax was a bit of a surprise! The rates remain steady at 18% for basic-rate taxpayers and 28% for higher-rate taxpayers. This stability provides a clearer financial picture, especially for those holding properties in higher value brackets. If you’re considering keeping your investment for the long haul, these unchanged rates can make planning a little easier.

What’s happening in the market right now?

This autumn has seen a surge in activity, with an increase in sales agreements compared to last year (recently we had 8 agreed sales within 3 weeks!). Although buyer interest remains strong, the market is still sensitive to price – properties that are realistically priced are the ones attracting attention. Strategic pricing is essential to capture serious buyers in a dynamic market. If you’re looking to sell your property, contact us today for a complimentary appraisal of your property. We know the area well (we are about to celebrate 50 years in the industry) so we can expertly advise you on pricing your home for sale.

Staying ahead this autumn & how we can help

The 2024 Autumn Budget has introduced changes that will shape the property landscape in the months ahead. We know that moving can be a challenge, so we’re here to help you through your whole property journey. Whether you’re a homeowner looking to sell or a buyer looking for property in Wimbledon, Wimbledon Village or the surrounding areas our team is here to guide you. With our expert knowledge and personalised service, we’re ready to help you make the most of your move.

If you’re thinking of making a change before the festive season and want to kick off 2025 in a new home, now is the time to take action. Contact our expert Residential Sales team on 020 8971 6780 for any property related questions and see more about how we can help with your move here: https://www.as-r.co.uk/sales/why-choose-us/

We are a proud member of The Guild of Property Professionals, a unique network of 800+ Independent Estate Agents across the UK. We can promote your property far and wide thanks to our nationwide (and international) connections. If you’d like to speak to a property expert, give us a call on 020 8971 6780 for a quick chat or visit our website for a complimentary appraisal of your property: https://andrew-scott-robertson.pro-val.propertylogic.net

Posted in ASR News