On Wednesday, 30th October, Chancellor Rachel Reeves will deliver Labour’s first Budget. This highly anticipated 2024 Autumn Budget will impact the UK property market significantly. For property developers, investors, and landlords, the outcomes could present both challenges and opportunities.

The 2024 Autumn Budget comes at a critical time for the UK property market, which is sensitive to changes in taxes, spending, and benefits. In her recent speech at the Labour Party conference, Reeves acknowledged the need for “difficult decisions.” A stable economy is the goal, but balancing economic growth with a £22bn financial gap is no easy feat. UK property professionals are closely watching how these changes will influence the market’s stability.

Economic Context in the Budget: Stability or Strain for the UK Property Market?

The 2024 Autumn Budget will play a crucial role in the future of the UK property market. Reeves has stated that the current economic situation is the most challenging since World War II. As the UK’s economy seeks to recover from the recent recession, a stable outlook could help boost confidence in the property sector.

For a closer look at related economic decisions, see UK Economic Forecasts.

Tax Changes: Implications for Property Investors

In this Autumn Budget, tax adjustments will impact property investors, developers, and landlords:

• Capital Gains Tax (CGT) changes will affect those selling properties, especially impacting the buy-to-let sector.
• Inheritance Tax (IHT) reform may alter tax burdens, particularly with high property prices in the UK.
• Fuel Duty adjustments could affect construction and development logistics.

Supporting Housing Supply in the Budget

The UK property market still faces a supply shortage, and the 2024 Autumn Budget will likely focus on new policies to encourage development. With Labour prioritising housing, developers are expecting incentives like tax breaks for eco-friendly construction and other support initiatives.

Buy-to-Let Market: Landlord Impact

Landlords are awaiting Budget announcements as tighter regulations or increased rental income taxes could impact the already tight rental market. Clearer guidelines and potential support could help landlords adjust.

Green Initiatives

Sustainability is a top priority for the government, and we can expect green initiatives in this Budget. Previous grants for energy-efficient homes could be expanded. More eco-friendly developments could receive tax incentives.

What’s Next for the UK Property Market Post-2024 Autumn Budget?

With flexibility, UK property investors, developers, and landlords will find ways to leverage new opportunities. At UK Homes Network, we’ll provide our members with ongoing insights into 2024 Autumn Budget updates. Stay tuned!