As Chancellor Rachel Reeves gears up for her first-ever Budget on 30th October, the housing market is holding its breath. This will be Labour’s first big chance to shake things up since coming into power, and everyone’s wondering what this means for property investors, homeowners, and those trying to get on the property ladder.
Capital Gains Tax (CGT) – Brace Yourselves, Landlords
One hot topic everyone’s talking about is Capital Gains Tax (CGT). With rates already high and regulations tightening, buy-to-let landlords could face even more pressure. Rumour has it that smaller property investors might get hit the hardest if CGT exemptions get slashed or rates go up, potentially making property investment a lot less appealing.
Freedom to Buy – Will First-Time Buyers Finally Catch a Break?
Labour’s big promise for first-time buyers was the Freedom to Buy scheme, aimed at helping people get low-deposit mortgages. This Budget could finally give us the details on how that’ll work. There’s also talk of updating the Lifetime ISA scheme. Right now, there’s a penalty if you use it to buy a property over £450,000, which is pretty restrictive in areas like London. Removing this penalty would be a real win for buyers who just need a bit more support.
Stamp Duty – To Freeze or Not to Freeze?
Stamp duty is another area under the microscope. Currently, first-time buyers get a break on homes up to £425,000, but that limit is set to drop back to £300,000 in 2025. Home movers face stamp duty from £250,000, but that’s going back to £125,000 next year, which could slow things down even more. There’s also talk of a possible stamp duty freeze for homeowners over 65 who want to downsize, which would make it easier for them to move and free up larger homes for younger families.
More Affordable Housing – Will Labour Follow Through?
Labour’s keen on making housing affordable and revitalising urban areas. With interest rates settling, there’s a chance for the government to help developers get more projects off the ground, which could mean more homes for everyone. Simplified planning processes and incentives for building affordable housing could give local economies a boost and make a dent in the housing crisis.
What’s Next?
As the Budget approaches, everyone’s wondering how much Labour will commit to easing the housing market’s biggest issues. If they get it right, this could be a real step forward in making homeownership more accessible and reducing barriers for everyone in the UK property market.
