October 30th 2024.
With the Autumn 2024 Budget set to be announced tomorrow, Chancellor Rachel Reeves is preparing to unveil her plans. Despite previous warnings from Prime Minister Keir Starmer about the potential difficulties, Reeves remains committed to rebuilding the UK economy.
One of the main areas of focus for Labour in this budget is the housing market. From stamp duty and renters' rights to social housing and capital gains tax, it is expected that there will be significant changes and commitments announced by Reeves.
Firstly, stamp duty is likely to be addressed. This is the tax paid by homeowners when purchasing a property over a certain value. Currently, there is no stamp duty on properties up to £250,000, with first-time buyers exempt up to £425,000. However, this relief is set to end in March 2025, meaning existing homeowners will be liable for purchases over £125,000. It was always intended to be temporary and was first introduced in October 2022.
There have been rumors that the government plans to extend this relief, but it is likely that it will only apply to first-time buyers. However, it is worth noting that the average property value in London is £688,856, which is well over the £300,000 threshold that first-time buyers would be expected to pay stamp duty on, potentially causing financial strain for many.
In addition to stamp duty, there may be changes to renters' rights through the Renters' Rights Bill. While there have already been proposals for changes, it is unlikely that any direct help for renters will be announced tomorrow. The Bill aims to give tenants more rights and protections, but there are concerns that it could also lead to a decline in the supply of rental properties if landlords are hit with increased costs and taxes.
On the other hand, there is good news for social housing as Reeves is expected to guarantee £500 million in funding, which could result in the construction of up to 5,000 affordable homes. This is in line with Labour's commitment to addressing the housing crisis and ramping up housebuilding to boost economic growth.
Currently, there are over 323,000 households on waiting lists for social housing in London alone, with an average wait time of 844 days for a one-bedroom property and over 2,000 days for a larger family home. Nationally, there were 1.21 million households on waiting lists in March 2022, showing a 2% increase from the previous year.
It is clear that the Chancellor's plans for the Autumn 2024 Budget will have a significant impact on the housing market and the economy as a whole. While there may be challenges and potential difficulties, Labour remains committed to rebuilding and improving the UK economy.
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