The Autumn Budget 2024 presented by Chancellor Rachel Reeves marks a significant shift in housing policies with measures set to reshape the market.
- A £5bn investment is targeted towards development and construction, with particular focus on affordable homes.
- Changes to Capital Gains Tax and Stamp Duty Land Tax are poised to impact property investors and buyers of additional properties.
- Efforts to boost housing supply include substantial investments in renovation and infrastructure development.
- The Budget outlines a comprehensive strategy to make housing more accessible and sustainable for future generations.
The announcement of the Autumn Budget 2024 by Chancellor Reeves has introduced pivotal changes in housing policies. The Government has allocated over £5 billion to development and construction, aiming to increase the affordable homes programme to £3.1 billion. This initiative is expected to result in thousands of new homes, benefiting first-time buyers and those aiming to move home.
The Budget addresses property taxation, most notably with adjustments to Capital Gains Tax (CGT) for investors. The lower rate has risen from 10% to 18%, and the higher rate from 20% to 24%, aligning with residential property tax rates. This alignment seeks to raise government revenue but has attracted criticism for the additional burden it places on property investors.
In another move, the Stamp Duty Land Tax (SDLT) surcharge for second homes has been increased by two percentage points, now standing at 5%. Effective immediately, this measure aims to dissuade the purchase of additional properties and make room for those entering the housing market.
To enhance housing availability, the Government has committed to renovating existing sites, such as Liverpool central docks, promising 2,000 new homes. Additional funding will aid Cambridge to achieve its growth potential, reflecting a focused effort on urban development.
A further £47 million is designated to overcome hurdles posed by nutrient neutrality, aiming to facilitate the creation of up to 28,000 homes in affected areas. The Budget also promises a £500 million boost to the Affordable Homes Programme, targeting the construction of up to 5,000 new homes while keeping an eye on sustainability.
Future investments, including £70 million in the 2025-26 period, are geared towards integrated infrastructure and housing projects to promote environmental recovery. Additionally, remediation funding will surpass £1 billion to expedite the repair and redevelopment of social housing, underscoring the commitment to building a sustainable housing framework.
A commitment to increase the workforce of Planning Officers is part of the strategy to enhance the planning system’s efficacy, thereby accelerating housing development. Chancellor Reeves emphasised the determination to revitalise the housing market and support economic growth through these reforms.
The Autumn Budget 2024 sets a course for transformative change in the UK housing market, focusing on accessibility and sustainability.
