Autumn Budget 2024: Implications for Home Buyers and the Conveyancing Process

The latest Autumn Budget has introduced several significant changes impacting the housing sector, particularly aimed at boosting affordable housing and supporting the mortgage market. At Warner Goodman LLP, we recognise how these developments can influence the property market and affect conveyancing timelines and costs for our clients. Here's a breakdown of what the new budget means for home buyers, sellers, and investors navigating their next property transaction.

Boosting Affordable Housing: Opportunities for First-Time Buyers

The government is investing £5 billion into housing, with £3.1 billion earmarked for the Affordable Homes Programme. This funding supports projects like the Liverpool Central Docks, which will provide 2,000 new homes and revitalise the waterfront. Additionally, £25 million is dedicated to constructing 3,000 energy-efficient homes, aligning with sustainability goals. For conveyancers, this focus on affordable housing may increase demand from first-time buyers seeking these new properties, highlighting the need for efficient conveyancing services.

Stamp Duty Changes: Increased Costs for Landlords and Second-Home Buyers

A key aspect of the Autumn Budget is the rise in the stamp duty surcharge on additional properties from 3% to 5%, effective October 31, 2024. This change will increase costs for landlords and investors, with an estimated additional £7,000 in stamp duty on average property prices for second homes. While some landlords may reconsider their investment purchases, others might factor this surcharge into their plans. This could lead to a surge in instructions from landlords wishing to complete transactions before the deadline or a slowdown as they reassess their portfolios.

First-Time Buyers: Stamp Duty Relief Ending Soon

The budget did not extend the current elevated stamp duty thresholds for first-time buyers, set to end in March 2025. Currently, first-time buyers enjoy exemptions on properties priced up to £425,000. After the threshold returns to £300,000, buyers may face stamp duty costs of up to £3,538 on properties at the current UK average price. This potential change may prompt a rush amongst first-time buyers eager to complete purchases before the deadline, necessitating swift conveyancing processes.

Mortgage Market Stability: Permanent Mortgage Guarantee Scheme

A supportive measure for home buyers is the government's intention to make the Mortgage Guarantee Scheme a permanent fixture. This scheme facilitates 95% loan-to-value mortgages, making home ownership more accessible with lower deposits. Its permanence could encourage more buyers to enter the market, boosting demand for conveyancing services.

Stability in Capital Gains Tax

Capital Gains Tax on residential properties will remain unchanged, alleviating concerns for landlords selling properties. This stability may lead to more landlords maintaining their portfolios, resulting in fewer rental properties on the market and potentially creating a steadier rental market.

Seek Legal Advice

With ongoing shifts in the property landscape, expert legal guidance through the conveyancing process is more valuable than ever. Our team at Warner Goodman LLP is prepared to assist clients in navigating these changes, offering support on stamp duty implications, mortgage planning, and affordable housing acquisitions.

If you're considering buying or selling property, or if you're an investor impacted by the latest stamp duty increases, get in touch with us to discuss how we can make the conveyancing process smooth and transparent amid these new developments. Contact our team on 01329 288121 or email enquiries@warnergoodman.co.uk.