UK Budget 2024: Relief for some, but new hurdles for property investors

After Chancellor Rachel Reeves' Autumn Budget 2024, the property sector is feeling a cautious mix of relief and concern. The budget was initially feared to be a "pre-Halloween horror show," but it included fewer drastic measures than expected. However, it did introduce significant tax changes for landlords and second-home buyers.

Many industry experts are worried that raising Stamp Duty on second homes and eliminating non-dom tax status could reduce investment interest, especially in London. High-net-worth individuals might move their investments abroad, which could affect prime property markets. On the positive side, the decision to keep the current Capital Gains Tax on residential properties offers some stability, which supports the rental market.

The government's focus on high-net-worth individuals and second homeowners shows its approach to funding public services, but this could potentially hurt market vibrancy. LondonDom, a boutique real estate consultancy, emphasizes that it is crucial to maintain London’s appeal to global investors to keep its economic and cultural vitality.

Overall, while there are some positive changes, concerns remain that increasing entry costs for investors might lower property supply, particularly in the rental market, which could lead to rising rents. As the situation unfolds, the industry will closely monitor the long-term impacts on the UK property market.