What Does the Autumn Budget Mean for the Housing Market?

News What Does the Autumn Budget Mean for the Housing Market?

On 30th October 2024, the Labour Government’s long-awaited first budget was announced.

Prior to the official announcement, there was much anticipation regarding potential changes to the housing industry, especially as the government has prioritised building new homes.

And Chancellor Rachel Reeves did indeed reveal a raft of new changes that will impact those moving home in the next year. 

In this article, the team here at Clockwork Removals and Storage will explain the key changes, ensuring you understand everything you need to know about how the Autumn Budget will affect the housing market. 

Stamp duty for first-time buyers 

In 2022, the stamp duty relief threshold for first-time buyers was raised to £425,000. This meant that first-time buyers would not have to pay any stamp duty on properties that cost less than this amount. For properties that cost between £425,000 to £625,000, first-time buyers currently have to pay an additional 5% in stamp duty. 

In the budget, Reeves announced that this threshold will remain in place until April 2025, but then it will be lowered. 

From April, first-time buyers will be required to pay stamp duty on properties that cost £300,000 or above. A 5% stamp duty fee will be included on properties that cost between £300,000 to £500,000 for first-time buyers. 

This means that many first-time buyers who are looking to get on that first step of the property ladder will be rushing to do so before April arrives to avoid stamp duty fees.   

Stamp duty for home movers 

For movers who are looking to buy their next property, there are also some significant stamp duty changes. 

From April 2025, the stamp duty for home movers will be lowered from £250,000 to £125,000. A 2% fee will be required on the portion between £125,000 to £250,000. It will then be 5% for properties between £250,000 to £925,000.  

Stamp duty for second homes 

For those buying second homes or properties to rent, changes have already come into force. 

Now, anyone buying a second property will be required to pay a 5% stamp duty rather than the 3% that was in place prior to the budget. 

The new bands are as follows:

• £0-£250,000 – 5%
• £250,000 – £925,000 – 10%
• £925,000 – £1.5m – 15%
• Above £1.5m – 17%

Clockwork’s perspective 

At Clockwork Removals and Storage, we offer a wide range of leading removals and storage services to help make moving as easy as possible for all those moving home. 

On the budget, our Managing Director Paul Handley said: “In a very seasonal industry, which usually sees the first quarter of the calendar year as the quieter time for removal companies throughout the UK, these significant changes will almost certainly see a much busier early 2025 than we would usually anticipate. 

“This is especially the case for first-time buyers who have already been struggling with rising house prices over the past few years and could be saving thousands if they can complete their purchase by 31st March 2025. Although, with the long lead time from sale agreement to completion, this will be tight to achieve in just 5 months. However, our teams throughout the UK will work hard to ensure all our customers are moved quickly and efficiently.”

In what is sure to be a busy period between now and April 2025, Clockwork Removals and Storage is here to make the process as easy as possible for you. To find out more about our range of services operating nationwide, contact our team today.