The country’s first female Chancellor, Rachel Reeves, delivered Labour’s first budget for 14 years, raising taxes by £40bn. What does it mean for housing?
Second homes
From 31st October 2024, people buying a second home will need to pay an extra 2% of the entire property cost in Stamp Duty. The 3% rate, above standard residential rates, on properties up to £250,000 ,will therefore rise to 5%.
Stamp Duty for first-time buyers (FTBs)
FTBs will continue to benefit from a raised Stamp Duty threshold until April 2025, meaning no Stamp Duty on properties costing up to £425,000. From April 2025, FTBs will need to pay Stamp Duty of 5% on the portion of the property between £300,000 to £500,000.
Property investors
Capital Gains Tax (CGT) is charged on the sale of assets, including second homes. The lower and higher main rates of CGT will increase to 18% and 24% respectively for disposals made on or after 30th October 2024.
Affordable Housing
The Chancellor announced £500m for affordable housing as part of a package worth £5bn to deliver 33,000 new homes, boost supply and support small housebuilders. Several sites across the country have already been earmarked for development. The government is also hoping to increase the supply of affordable housing by reducing Right to Buy discounts on council homes.
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Representative Example: 5.75% APR, based on borrowing £200,000 over 25 years on a 4.5% fixed rate for the first 5 years, giving 60 monthly payments of £1,111.98, followed by 240 payments of £1,222.54 on a variable rate (currently 5.0%). Total amount payable £367,112.40, including the following one-off costs: £30 remittance fee and £350 valuation fee.
Your home may be repossessed if you do not keep up repayments on your mortgage.
As with all insurance policies, conditions and exclusions will apply.
