
MIH TEAM
23/01/25
Investing in Maintenance
020 3637 7968
info@mihproperty.co.uk020 3637 7968
What does the 2024 budget mean for the rental property sector?
Rachel Reeves declared that she was looking to raise taxes by a whopping £40 Billion to plug a budget shortfall. It was a unique and bold statement from Reeves, thanks to her being both the first woman to present a budget and the sheer audacity of it. All in the name of fixing the broken bits of the British economy and stimulating growth, the British public was forewarned of the impending hikes and was not disappointed.
In a bid to reach budget targets, Reeves has taken a bite out of various revenue pots, which affect all of us – including landlords.
But some of the proposed changes will have a much bigger effect on Landlords and subsequently, tenants.
In fact the lack of reform concerning stamp duty is a disappointment for many. Besides the effect on the rental market there is a belief now that allowing the over 65s to downsize without stamp duty would lead to an important shift in the property market as it currently stands. Such a move would free up much needed family homes, opening up the market across the board and redressing the balance of available property – a shakedown.
Not surprisingly, the budget makes life that bit harder for already struggling landlords. Whilst many cannot understand the machinations of the stock markets, home ownership as an investment has always been viewed as tangible, credible and accessible to the masses. Where once owning a 2nd, 3rd or more properties was considered a worthwhile business venture from which many had drawn their income and staked their pension, the landscape is now complicated and tricky to navigate cost effectively.
Well there isn’t too much on the plus side unfortunately, however if blessings are to be counted, then at least CGT hasn’t increased. Phew! Another possible improvement on the horizon is the government’s investment in affordable housing which is long overdue. More property stock will bring movement and change in the housing market overall, which long term should see us gravitating back to a more balanced, fairer and more manageable way of keeping a roof over everybody’s heads.