What the Autumn Budget means for home movers in Chiswick

Ad - Chiswick Estate Agents Horton and Garton give some insight into the Autumn Budget

What the Autumn Budget means for home movers in Chiswick

While the recent Autumn Budget included updates to Inheritance Tax (IHT) and Capital Gains Tax (CGT), perhaps the most notable change for the local W4 property market is the significant adjustment to Stamp Duty Land Tax (SDLT), set to take effect from April 2025.

For home movers, landlords, and tenants alike, these changes, combined with updates such as the upcoming Renters Rights Bill, will shape decisions in the months ahead.

Stamp Duty Land Tax (SDLT) Adjustments

From April 2025, first-time buyer relief will reduce, with the threshold dropping from £625,000 to £500,000. For properties above this value, first-time buyers will face the same SDLT rates as standard buyers on the overall property price.

These changes will have a significant impact locally for those entering the market. For example, SDLT on a £600,000 property from April for first-time buyers, will rise from £8,750 to £20,000 — an increase of 128%.

Additionally, a new 2% SDLT rate will apply to properties priced between £125,001 and £250,000, which will increase the cost of purchasing a property for all buyers.

If you’re considering selling your property in 2025, our advice is clear: now is the time to act. The upcoming SDLT increases will affect buyers’ costs, potentially reducing their budgets.
By getting your property sale-ready and on the market, you can get ahead of the curve and avoid potential challenges posed by these changes.

Read our full blog on SDLT here.

Listing your property before Christmas allows you to capitalise on current market conditions and avoid potential buyer cost increases due to the new tax rates.

For some sellers an off-market approach might be the best strategy as it can provide discretion and attract serious buyers without public advertising. Our article, London Property | The Secret Sales Market, explores the benefits of this method.

Capital Gains Tax (CGT) Increases

The Budget's CGT changes are also set to impact decisions for homeowners selling second homes or investment properties. Effective from 30 October 2024, the main CGT rates will increase from 10% and 20% to 18% and 24%, respectively.

Upcoming Renters Rights Bill

The Renters Rights Bill, expected to come into effect in 2025, is set to bring significant changes for landlords and tenants. While the exact terms and implementation dates are still to be confirmed, the proposed measures include:

• Ban on no-fault evictions: Section 21 notices will be abolished. However, landlords will have enhanced eviction grounds under Section 8, such as needing to sell the property or requiring it for personal use.
• No more fixed-term tenancies: All new tenancies will become periodic from the outset, replacing traditional fixed-term agreements.
• Rent controls and limits: Landlords will be able to increase rents only once per year, with increases needing to reflect market rates.
• No bidding wars: Offers above the asking price will be prohibited.
• Mandatory landlord registration: All landlords will need to register on a new online portal.
• Pet-friendly policies: Blanket bans on pets will no longer be permitted, although landlords can require conditions such as pet insurance.

These changes aim to modernise the rental market and enhance tenant rights, but they will also require landlords to adapt their property management practices. Horton and Garton remains up to date on all proposed legislation and can provide guidance to landlords preparing for these changes.

Latest property market update for Chiswick

To watch our latest property market update, click here.

Navigating the Changing Market

With SDLT changes, CGT increases, and the Renters Rights Bill shaping the market, planning ahead is more important than ever for Chiswick home movers.

While these updates may increase costs or require adjustments, there are still opportunities to act strategically.

For expert advice on buying, selling, or letting property in Chiswick, contact Horton and Garton. Our experienced team is here to help you navigate the changing landscape and make informed decisions.

Advertorial

November 22, 2024