The Budget 2024 and the Impact on the Property Market

The UK budget announcement will have various impacts on mortgages and the property market, the key areas we have identified are:

Stamp Duty Land Tax (SDLT) Reform: 

The Spring Budget did not bring the anticipated Stamp Duty reform, disappointing many. This absence could hinder homeowners’ ability to move up or down the property ladder, affecting freedom of movement in the housing market[2][5].

99% Mortgage Scheme Abandoned:

Chancellor Jeremy Hunt decided against introducing a 99% mortgage scheme due to concerns about inflated house prices and unaffordable mortgages. This decision was seen as a missed opportunity to help first-time buyers overcome expensive deposits[3].

Tax Changes and Property Market:

The budget included tax changes that could indirectly benefit first-time buyers, such as reducing the higher rate from 28% to 24%. However, there were criticisms about the lack of comprehensive measures to boost the property market and address key issues like Stamp Duty and housing affordability[4].

Abolishment of Tax Breaks:

The Chancellor announced the abolition of tax breaks for holiday lets, including the furnished holiday lettings regime. This move aims to eliminate the tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants. It is estimated that cutting holiday let relief will save the government £245 million annually, with this change taking effect from 6 April 2025[6][7][8].

The Spring Budget 2024 Summary:

Overall, the budget announcement’s impact on mortgages is mixed, with missed opportunities for reforms that could have positively influenced the housing market and supported first-time buyers particularly.

However the UK property market in general is showing signs of recovery and growth with lenders offering competitive rates across the markets. If you are looking to purchase a home, a buy to let or just want to ensure you are currently on the best deal it’s vital you work with a broker such as Mallard Mortgages who can cut through the jargon and support you with informed insights.

Citations & Useful Links:

[1] https://ifamagazine.com/mortgage-and-property-experts-react-to-chancellors-budget/
[2] https://www.contractoruk.com/news/0016295spring_budget_2024_property_and_mortgages_be_contractors.html
[3] https://www.bigissue.com/news/housing/99-mortgage-spring-budget-jeremy-hunt-homeownership/
[4] https://www.mortgagesolutions.co.uk/news/2024/03/06/budget-plans-could-indirectly-benefit-first-time-buyers-reaction/
[5] https://www.standard.co.uk/homesandproperty/property-news/spring-budget-2024-housing-property-predictions-b1143345.html
[6] https://www.mortgagestrategy.co.uk/news/spring-budget-stamp-duty-and-holiday-let-tax-breaks-abolished/
[7] https://blog.goodlord.co/spring-budget-2024-for-letting-agents-and-landlords
[8] https://www.pkf-francisclark.co.uk/furnished-holiday-lets-abolition-of-preferential-tax-regime-from-april-2025-budget-2024/