The Autumn Budget made the headlines with a host of announcements, mostly on taxation. Housing did not play a large part in the key fiscal event, but there are a few points to be aware of.
Second homes
From 31 October 2024, people buying a second home pay an extra 2% of the entire property cost in Stamp Duty. The 3% rate, in addition to standard residential rates, rose to 5%.
Stamp Duty for FTBs
FTBs will only continue to benefit from a raised Stamp Duty threshold until 31 March 2025, meaning no Stamp Duty applies on properties costing up to £425,000. From 1 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 increased to 18% and 24% respectively for disposals made on or after 30 October 2024.
Affordable Housing
During the Budget, £500m of new funding was announced 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 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.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home. Equity released from your home will be secured against it.
