What the autumn budget 2024 means for the property market

The Chancellor’s Autumn Budget announcement this week revealed the key changes for the housing market aimed at creating stability and supporting affordability. At Ferrari Real Estate, we see these developments as promising for homeowners contemplating selling their properties or looking to buy. We’ve created this blog to review the changes so you don’t have to! 

Stable Mortgage Rates: An Advantage for Sellers and Buyers Alike

One of the standout measures is the government’s commitment to stabilise mortgage rates. With efforts to control inflation, we anticipate that interest rates could start levelling off. For homeowners thinking about selling, this is positive news; as buyer confidence rises in response to steadier rates, the market could see an increase in demand, translating to more offers and stronger competition for well-presented properties.

Market Incentives Targeting Affordability

While the budget’s focus on affordable housing aims to support new buyers, it can indirectly benefit sellers too. By improving affordability, the government is expanding access to the housing market, encouraging more people to make their first purchase or move up the ladder. For sellers, this creates a favourable environment as demand grows and more buyers enter the market, boosting the potential for a timely sale at an appealing price.

Stamp Duty Changes: Impact on Second Homes and Investments

A key change in this year’s budget is the increase in Stamp Duty Land Tax (SDLT) for additional property purchases, including second homes and buy-to-let investments. The surcharge has risen from 3% to 5%, adding a further cost consideration for investors and second-home buyers. For homeowners looking to sell, this change could mean less competition from the investment market, focusing buyer interest on those purchasing primary residences. While this may lead to fewer speculative buyers, it strengthens the appeal of selling to motivated buyers with long-term intentions.

Capital Gains Tax: Considerations for High-Value Sellers

The Chancellor’s decision to maintain the capital gains tax (CGT) threshold allows current sellers to plan with confidence. This is particularly relevant for owners of higher-value homes who may otherwise have been impacted by more drastic CGT changes. For those looking to realise the current market value of their property, the steady tax environment provides reassurance that selling now could be advantageous.

Energy Efficiency Incentives: Enhancing Property Appeal

Increased incentives for energy-efficient home improvements also make a significant impact. Properties with energy-saving features are now more attractive to environmentally conscious buyers, who are increasingly seeking homes that reduce running costs and align with sustainable living. Sellers with energy-efficient properties could find their homes in higher demand, as buyers look to take advantage of these savings.

A Balanced Outlook for Sellers in 2024

With the budget designed to support market stability, we at Ferrari Real Estate foresee a positive outlook for sellers in 2024. A stable economic environment often leads to increased buyer confidence, which is key in encouraging potential buyers to commit to purchases. For those considering selling, this could be an opportune time to enter the market.

What Does This Mean for Buyers?

For buyers, the Autumn Budget offers new incentives to make home ownership more achievable. With affordable housing schemes and shared ownership support expanding, there are options to ease the path to buying – even for those previously priced out of the market. The anticipated stabilisation of mortgage rates further improves prospects, making monthly payments more predictable and affordable. Additionally, buyers now have more reasons to seek properties with energy-efficient upgrades, which can provide future cost savings through reduced utility bills and environmental incentives.

At Ferrari Real Estate, we’re here to support both buyers and sellers with expert guidance. Whether you’re ready to sell or just beginning to explore the market, get in touch to discuss how the latest economic policies could work to your advantage.

Contact us to learn more about any of these changes.