Key Takeaways from Labour's Autumn Budget: What it Means for Property Investors*

Yesterday, Chancellor Rachel Reeves unveiled Labour’s first Autumn Budget in over 14 years, and it’s set to impact the UK property landscape in some significant ways. Here’s what you need to know:

Stamp Duty Surcharge Increase for Second Homes & Buy-to-Let Properties

Starting today, additional property purchases will see a stamp duty surcharge increase from 3% to 5%. This applies to second homes and buy-to-let investments—a notable rise that may cool investor interest in these markets.

Stamp Duty Relief Stays for First-Time Buyers

For first-time buyers, relief remains unchanged, with no stamp duty on purchases up to £300,000 for properties valued at £500,000 or less. However, the relief previously available for properties valued up to £625,000 has been removed, potentially impacting those considering higher-value areas.

Stamp Duty Thresholds Resetting in 2025

From March 2025, stamp duty thresholds will revert to previous levels, affecting all buyers, especially in high-demand areas like London and the South East. This could mean planning ahead for any big moves before these thresholds change.

Capital Gains Tax (CGT) Rates Hold for Property

No surprises for CGT on residential property, with rates remaining at 18% for basic rate taxpayers and 28% for higher rate taxpayers. For other assets, though, CGT rates are rising—from 10% to 18% for the lower rate and 20% to 24% for the higher rate.

What’s the Bottom Line for Property Investors?

These updates signal potential shifts in the investment landscape. For those considering new purchases, sales, or strategic moves, it’s a good time to re-evaluate budgets and timelines. With changes on the horizon, taking a proactive approach to managing property assets will be key.

If you’d like a deeper dive into how these updates might affect your investments, or want to stay prepared for what’s next in the property market, feel free to reach out.

Curious about your property's current market value? Get an up-to-date rental or sales valuation instantly here:

https://vapropertyconsultants.myinstantvaluation.com/