The Budget contained limited changes affecting property. Measures focus on significant boosts to funding to build affordable and social housing in England, supported by previously announced changes to planning reforms, as well as moves to have a capped fiver-year agreement on social housing rent increase and a reduction in discounts for Right to Buy.
To boost the private housing market, £3bn of additional support will be provided in the form of housing guarantee schemes for SMEs and the build-to-rent sector.
On property-related taxation:
- The government will increase the Higher Rates for Additional Dwellings (HRAD) in Stamp Duty Land Tax on the purchases of second homes, buy-to-let residential properties, and companies purchasing residential property, from 3% to 5% from 31 October 2024. Those who exchanged contracts prior to 31 October 2024 are not affected by this rate increase. This is suggested as a measure to ensure incentives support first-time and main-home buyers.
- On Inheritance Tax, the government announced changes relating to Agricultural Property Relief (APR) from 6 April 2025. APR will be extended in scope to include land managed under an environmental agreement (with UK and devolved governments or other public bodies). From 6 April 2026, in addition to existing nil-rate bands and exemptions, the current 100% rates of relief will continue for the first £1m of combined agricultural and business property to help protect family businesses and farms. The rate of relief will be 50% thereafter (and in all circumstances for quoted shares designated as ‘not listed’ on the markets of recognised stock exchanges, such as AIM).
- The government is raising revenue by increasing Capital Gains Tax (CGT), The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024. These new rates will match the residential property rates, which are not changing.
