What to expect in the property market in the upcoming Autumn Budget

The UK Autumn Budget 2024, set to be delivered by Chancellor Rachel Reeves on October 30, is expected to include several measures that could significantly impact the property market, especially for landlords and property owners.

One major expectation is a potential increase in Capital Gains Tax (CGT). Currently, CGT on property sales is 18% for basic rate taxpayers and 24% for higher rate taxpayers. However, there are rumors that CGT rates could rise to 30%, or even be aligned with income tax rates, which would increase the burden on higher earners to 40%-45%. This could prompt many landlords to sell before the changes come into effect, and it might reduce the number of rental properties over the long term.

Another possible area of reform is inheritance tax (IHT), which may see the current rate of 40% increased or the threshold of £325,000 reduced. This would particularly affect property owners with larger estates.

There has also been discussion around stamp duty. While specific changes aren't confirmed, some industry bodies have called for reforms, such as scrapping the 3% surcharge on buy-to-let properties, or introducing reliefs to boost housing market activity. Additionally, a planned 1% rise in the stamp duty surcharge for non-UK residents is likely to be implemented.

Finally, energy efficiency requirements are expected to tighten, with landlords potentially facing new grants or stricter standards to meet upcoming changes to Energy Performance Certificate (EPC) ratings, especially for rental properties.

If you’re thinking of selling find out how much your home might be worth with our FREE instant online valuation or call Simon or Ben at Randalls Residential Estate Agents in Basingstoke on 01256 345635.