The 2024 Autumn Budget
Many people were concerned as to what awaited us all in the Government’s budget. Well the wait is over, but the impact may consequences for us all and the housing market in particular for some time to come.
Stamp Duty Land Tax will apply if you purchase property or land over a certain value on a rising scale. Previously the tax secured around £15.4 billion in the financial year 2022 – 2023, up 9% on the sums raised in the year prior.
The Tax is paid if you were to :
- buy a freehold property
- buy a new or existing leasehold
- buy a property under a shared ownership scheme
- enter into a mortgage or buy a share in a house
The size of the tax is directly related to the value of the property and whether it is to be used for residential purposes and additionally if you own more than the one primary residence.
Private Landlords in the ‘Buy to Let’ market
The tax has a direct impact on the Private Landlord market as it could affect a Landlord’s ability, or readiness to purchase more property to let out to the rental market. If there are fewer rental properties, the demand for those remaining may drive up rents as an unintended consequence. Conversely if the demand in private landlords purchasing property slackens generally, due to unwillingness to bear the cost of the Stamp duty house prices themselves may weaken. That may however also enable large property corporations to hoover up those properties. The market is always the ultimate arbiter of any governments decisions and the next 1-3 years will be of interest.
How much is stamp duty?
Currently home valued at less than £250,000 don't pay any stamp duty, (with the threshold having doubled from September 2022 when the government sought to stimulate the housing market).
On the same theme for those buying their first property the current threshold at which Stamp Duty is paid is £425,000. Previously this was set at a figure of £300,000 as part of the September 2022 mini-Budget.
These higher thresholds will now end in March 2025, when they are anticipated to be applied under the following scale.
- £0-£250,000 (£425,000 for first-time buyers) = 0% tax
- £250,001-£925,000 = 5% tax
- £925,001-£1.5m = 10% tax
- £1.5m+ = 12% tax.
What if I own more than one home?
If you own a residential property worth at least £40,000 already and you buy another, (or in conjunction with other people) currently an additional tax of 3% above and beyond those scheduled above is also applied.
For transactions with an effective date between 31 October 2024 and 31 March 2025, the rates are as follows:
| Relevant consideration | Percentage |
| So much as does not exceed £250,000 | 5% |
| So much as exceeds £250,000 but does not exceed £925,000 | 10% |
| So much as exceeds £925,000 but does not exceed £1.5m | 15% |
| The remainder (if any) | 17% |
For transactions with an effective date on or after 1 April 2025 those rates are as follows:
| Relevant consideration | Percentage |
| So much as does not exceed £125,000 | 5% |
| So much as exceeds £125,000 but does not exceed £250,000 | 7% |
| So much as exceeds £250,000 but does not exceed £925,000 | 10% |
| So much as exceeds £925,000 but does not exceed £1.5m | 15% |
| The remainder (if any) | 17% |
Get in touch with our Residential Conveyancing team
If you are an intended purchaser or a Landlord affected by the government’s budget announcement our Conveyancing team is on hand to provide advice and assistance.
To discuss how we can help, please contact your local Kingsfords office in Ashford, Cranbrook or Hythe. Alternatively, you can send an enquiry and a member of our team will get back to you promptly, by calling us on 01233 665544 or emailing via kld@kingsfords.net If you want to learn how much purchasing a property might cost, we can provide an estimate with no obligations.