With the delivery of the first Labour budget for 14 years, Chancellor Rachel Reeves has announced significant tax rises worth £40bn. These will be of particular interest to property owners, with some of the most notable changes within the budget focusing on the housing market.
Arguably the biggest impact for homeowners will come from the announced changes to Stamp Duty Land Tax (SDLT). With increases to stamp duty for second homes and lower stamp duty thresholds for primary dwellings, homebuyers could end up paying more to buy property or move home.
During her October 2024 budget speech, Rachel Reeves announced several changes to SDLT. These can be broadly broken down into three main policy changes that will see the government:
Although changes to stamp duty for primary dwellings won’t come into effect until April 2025, the immediate increase in SDLT for second homes means that landlords may have to revise their investment strategies in the face of increasing costs.
According to Rightmove, the 2% increase of stamp duty for second homes means that landlords could have an additional charge of more than £7000 based on the average asking price of a home of £371,958.
There’s no doubt that the Chancellor’s budget will have major implications across the UK’s economy, but with seismic shifts to SDLT and the overall cost of buying property, the impact looks to be particularly pronounced for the property market.
However, given the recent resilience of the housing market and the ongoing demand for property, things certainly aren’t all doom and gloom.
While many landlords and investors will need to reconsider their strategies in the face of the 5% stamp duty on second homes, the rental sector is crying out for more additional housing stock. For investors who are able to adjust their financial strategies accordingly, there is still a solid investment to be made from rental properties.
The good news for first-time buyers or home movers is that they will have until April 2025 to adjust their finances and manage their expectations to either avoid or budget for changes to SDLT.
Although April 2025 is currently six months away, that’s a relatively short time when it comes to buying property, so buyers who are in the process of moving home or planning to purchase property in the near future should seek the best advice and move quickly to avoid paying more for their home.
Whether you’re buying your first home, moving house or investing in a buy-to-let property, our friendly property experts can help you during every stage of your property journey.
As a trust estate agency with over 40 years of industry experience, Edward Mellor offers fully integrated financial services, planning, conveyancing, and surveying services under one roof.
If you’re looking to get onto the property ladder or seeking advice on securing the best buy-to-let deal to mitigate the impact of the SDLT increase, our team of qualified mortgage experts are here to help.
Contact Edward Mellor Mortgages
Related Pages
Stamp Duty – First Time Buyers | Stamp Duty – Home Movers | News
