The Cost of The Budget – It’s Going Up!

Olivia Hurrell, our Paralegal in our Property and Conveyancing Department reflects on the recent budget. In this blog, Olivia comments on the recent budget and what it might mean to our clients.

Olivia is based at our Eastbourne office and supports Andrew Pluck, Partner and Head of Property and Conveyancing. Olivia is currently studying Bachelor of Laws (Honours) (LLB) at The Open University, which she will complete in 2026.

The Autumn budget will have a significant impact on current and aspiring homeowners. Changes announced in the budget held on the 30^th October 2024 will affect everything from property taxes and mortgage rates to rental incomes and home-buying incentives. In this blog, I’ll touch on four areas of how the latest budget changes impact property ownership and what that could mean for you.

First Time Buyers

First Time Buyers will be facing more expense after 31 March 2025, with the upper price limit of £625,000 reverting to £500,000 and the maximum amount free of Stamp Duty Land Tax falling from £425,000 to £300,000.

With the price limit for first-time buyers being reverted to £500,000, we are likely to see a reduction on affordability and accessibility for those trying to get onto the property ladder.

Investors hit with Stamp duty surcharge

Investors will face an extra cost when buying second or additional properties in the UK due to a planned rise in stamp duty surcharge. This surcharge has been introduced to curb speculative investment and free up housing for owner-occupiers. It will have a considerable impact on the property market and the decisions of property investors

“Higher Rate” transactions hike

The stamp duty surcharge on additional properties is set to increase from 3% to 5% for transactions completed after 31 October 2024. This change applies to all transactions that are completed after 31 October, meaning buyers have until this deadline to complete purchases under the old 3% rate. Any purchase that finalizes after this date will incur the new 5% rate.

Flat rate for companies buying dwellings is increasing

The flat stamp duty rate for companies purchasing residential properties is set to increase from 15% to 17%, impacting corporate buyers of high-value residential properties. This adjustment, aimed at larger institutional and corporate buyers, affects those purchasing dwellings through a corporate structure or as part of a business.

Get in touch

To understand how these updates may impact your specific plans or property goals, it’s essential to get tailored guidance.

Please note the above is for information purposes only and is intended to be a short summary.  It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.

Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.