The recent UK Budget announcement brought updates that may impact some property buyers, investors, and landlords. Here's a summary of key changes:
- No Reversal of Upcoming Stamp Duty Threshold Reductions: Despite some speculation, there are no indications the government will reverse its plans to reduce Stamp Duty thresholds. First-time buyer relief is expected to decrease in April 2025, from £425,000 to £300,000, while the Stamp Duty threshold will revert to £125,000 for all buyers. This may spur buyers to act sooner to secure savings.
- Stamp Duty Increase on Additional Properties: Stamp Duty for additional property purchases has risen to 5%, up 2% from previous levels. This change, effective immediately, increases acquisition costs for buy-to-let investors and second-home buyers.
- Abolition of Non-Dom Tax Status: The abolition of the non-dom tax regime will end the tax benefit for UK residents with permanent homes abroad, who currently avoid tax on foreign income. This change could reduce demand in the high-end property sector, potentially softening luxury property prices.
- Rental Market Reforms and Sustainability Requirements: Investors and landlords will need to stay informed on upcoming rental reforms and sustainability mandates, including the Rent Reform Bill, which aims to improve tenant protections. New energy efficiency standards are also expected, which could require property upgrades over time.
For guidance specific to your property needs (sale or rental), contact our team as we are here to help you make informed decisions in this evolving market.