Property Management

X1’s Official Guide To The Spring Budget 2024

Mar 20th 2024

On March 6th Chancellor of the Exchequer, Jeremy Hunt, presented the Spring Budget 2024 to parliament, which has set the stage for significant developments within the property sector. 

The Budget is perhaps one of the last opportunities for the Conservative Government to lay out their tax and spending plans before the next general election, which is expected to take place by January 2025. 

The Chancellor stated he was presenting a “budget for long term growth” and announced policies including Stamp Duty Relief to rental sector reforms to the abolishment of Multiple Dwellings Relief and the Furnished Holiday Lettings Tax, to name just a few. 

How will the changes implemented affect you? As the budget measures introduced take effect in the near future, their impact on property prices, rental market dynamics, and investment opportunities will become clearer.

In this article our expert team at X1 will be providing a breakdown of the key takeaways from the Spring Budget 2024. So if you’re a homeowner, renter or first-time buyer, be sure to keep reading to stay up to date with the ever-changing real estate landscape! 

spring budget 2024

Capital Gains Tax: Residential Properties 

The Spring Budget has introduced many changes that will affect property professionals across the country, including cutting the higher Capital Gains Tax on residential properties from 28% to 24% from the 6th of April. 

Landlords have to pay Capital Gains Tax on the profit they make when they sell a buy-to-let property, so this lower tax-free allowance will mean they will have to pay more CGT when they sell. 

capital gains tax spring budget 2024

Extended Stamp Duty Land Tax Relief

Another important announcement that is set to affect those within the real estate sector includes the extension of the temporary reduction in Stamp Duty Land Tax (SDLT) for residential properties. 

This reduction was initially introduced in response to the COVID-19 pandemic, and has been extended for another year until the 31st of March 2025, which comes as a relief to home-buyers across the UK. 

So, if you’re searching for a new home, you can breathe a sigh of relief and maybe even save some extra cash!

Multiple Dwellings Relief Abolished 

A further key change announced by the Chancellor is the abolishment of Multiple Dwellings Relief on Stamp Duty Land Tax, on purchases of residential properties. 

Multiple Dwellings Relief was introduced back in 2011 to help reduce potential barriers for residential property investment and promote housing supply in the private rented sector. 

Previously, Multiple Dwellings Relief could be claimed when two or more properties were purchased together or in linked transactions. 

However, research has found that this relief was regularly being abused, so it has been announced it will be abolished for transactions with an effective date on or before the 1st of June 2024. 

Multiple Dwellings Relief Abolished 

Support for First-Time Buyers

The Spring Budget 2024 also introduced targeted incentives and schemes aimed at supporting first-time buyers on their home ownership journeys. 

Whilst the 99% mortgage scheme which was rumoured did not feature within the Spring Budget, the measures which were introduced aim to reduce barriers to entry into the property market and are sure to help increase demand amongst younger people aspiring to own their first homes.

Investment in Affordable Housing

The Spring Budget also announced an array of affordable housing initiatives, including investments within social housing projects and rent-to-buy schemes.

These initiatives are intended to address the ever present housing affordability challenges and ensure a more inclusive housing market for everyone, and will provide first time buyers a leg up in the property game. 

investment in affordable housing spring budget

Sustainable Housing Measures  

Another key takeaway from the Spring Budget included measures to promote energy-efficient housing, with up to £120 million pledged to build supply chains for offshore wind and electricity networks.

Such measures include grants and incentives for property owners to invest in green technologies and renewable energy sources, as well as introducing stricter energy efficiency standards for new builds and existing properties.

That’s it from us here at X1 on the key takeaways from the Spring Budget 2024, for a full breakdown of the measures and changes implemented, you can head to the official gov.uk website.

If you have any questions or you wish to discuss how these changes will affect you, do not hesitate to get in contact with us at X1 Sales & Lettings via hello@x1management.com.

FAQs about The Spring Budget 2024

How will the Spring Budget 2024 impact property professionals?

The Spring Budget introduces significant changes affecting property professionals, including a reduction in Capital Gains Tax on residential properties and the abolition of Multiple Dwellings Relief on Stamp Duty Land Tax. These alterations may impact property prices, investment strategies, and tax liabilities.

What is the extended Stamp Duty Land Tax Relief, and how does it benefit home-buyers?

The Spring Budget extends the temporary reduction in Stamp Duty Land Tax (SDLT) for residential properties until March 31, 2025. This extension provides relief for home-buyers by reducing the upfront costs associated with purchasing a property.

How does the Spring Budget support first-time buyers?

While the rumoured 99% mortgage scheme did not materialize, the Spring Budget introduced targeted incentives and schemes to support first-time buyers. These measures aim to reduce barriers to entry into the property market and increase demand among younger individuals aspiring to own their first homes.

What sustainable housing measures were introduced in the Spring Budget?

The Spring Budget includes measures to promote energy-efficient housing, with investments in offshore wind and electricity networks. Additionally, grants and incentives are offered to property owners to invest in green technologies and renewable energy sources, along with the introduction of stricter energy efficiency standards for new and existing properties.

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