Marketing Newscast

(Edited 31 October 2024)

With Chancellor Rachel Reeves delivering the first Labour budget in over a decade, London\'s real estate market braces for significant changes. The new government has introduced tax adjustments likely to influence property transactions, investor behaviour, and home ownership. Austin Homes, a leading East London estate agency, is optimistic that these policy shifts could foster stability and growth in the sector.

One of the most impactful changes announced was to Capital Gains Tax (CGT). The basic CGT rate for property investments has increased from 10% to 18%, while the higher rate now stands at 24%, up from 20%. These adjustments aim to align CGT more closely with income tax rates and could prompt shifts in the property investment landscape, especially at the high-value end of the market .

Stamp Duty Land Tax (SDLT) is another area of significant change. The Chancellor\'s budget includes an increase in the SDLT surcharge on additional properties from 3% to 5%, affecting purchases of second homes, buy-to-let properties, and corporate acquisitions of residential properties in England and Northern Ireland. While this may temper enthusiasm among landlords and property investors, it could also lead to more openings for first-time buyers in the market.

Some experts predict a short-term rush of buyers, particularly first-time buyers looking to complete transactions before these changes take effect. Austin Homes anticipates that these policy shifts may create unique opportunities for both investors and new buyers navigating a transformed market.

Austin Hayes, Managing Director at Austin Homes, commented, "The new tax landscape will require adjustment, but we are confident we can guide clients through these changes. While there may be some initial challenges, there\'s potential for long-term growth and a more accessible property market with new opportunities for first-time buyers.'

Austin Homes is a leading real estate agent across East London

Austin Homes is a premier real estate agent working across East London, known for its unmatched local knowledge, highly skilled team, and strong industry knowledge. Austin Homes can help you confidently navigate the evolving property market and tax changes, so you can focus on finding your dream home.