The Autumn Budget 2024 changes that could affect homeowners and renters from stamp duty to council tax

The Autumn Budget 2024 is set to be delivered by the Chancellor of the Exchequer in Parliament on Wednesday (October 30). Rachel Reeves, who was given the role of Chancellor after Labour's landslide victory in the last general election, will lay out the government’s plans for spending over the next year.

The Labour party has said it will need to make 'tough decisions' after claiming to have inherited a £22bn 'black hole' in the public finances from the Conservative government.

A number of changes are expected to come into force in the property sector, with experts predicting announcements to be made on stamp duty, council tax and housing targets.

READ MORE: Manchester named UK's second 'most unaffordable' place to rent behind one London borough

Ahead of the Autumn Budget, property experts have shared some insight into what could changes homeowners and renters can expect to see.

Stamp duty

The Government are widely tipped not to extend the reduced Stamp Duty threshold in April meaning many buyers will face larger than expected tax bills if they fail to complete in time.

David Roberts, Head of Property Department at HCB Solicitors Bristol, explained: "This change effectively increases the upfront cost for many, potentially slowing the housing market as it may deter people from buying either due to affordability or simple principles.

"The reduced threshold means that on a £300,000 property, you can expect to pay £2,500 in stamp duty come April if the Government announces this change.

"It's important to note that stamp duty must be paid within 14 days of buying a property. If you're unsure of how much stamp duty you owe, ask your solicitor as they'll be able to confirm the costs for you.

“If you are wanting to beat the tax increase, you’ll need to get the process underway sooner rather than later. You’ll also need to instruct a solicitor who has the capability of getting your purchase through in time."

Capital gains tax

One of the most anticipated changes is an increase in Capital Gains Tax (CGT) rates, which could rise to align more closely with income tax rates

Oli Banks from Oli Banks from North Property Group shared: “This could see CGT rates rise to 18 percent for basic taxpayers and 28 percent for higher taxpayers. For property investors, this could mean higher taxes on the sale of investment properties. Going forward, it would be optimal for investors to reassess portfolios and see where they could minimise additional costs”.

Housing targets

It is also expected that the budget will cover initiatives to meet Labour’s high targets of building housing and their commitment to regeneration.

Oli added: “This could benefit investors interested in large-scale development projects or build-to-rent schemes, as the government aims to ease planning restrictions and encourage brownfield development. Such policies could stimulate new construction in key areas, which would drive up property values.

“These policies could have a lot of valuable opportunities for property investors who are interested in build-to-rent schemes or anyone looking to invest in large-scale development projects. With the government prioritising the creation of more homes, particularly in urban areas, the value of property in regions benefiting from regeneration efforts could rise, offering long-term returns for investors”.

Green policies

It is also anticipated that there will be a push for energy-efficient improvements to properties, as stricter Energy Performance Certificate (EPC) regulations are expected.

Tim Coen from North Property Group commented: “Of course, this is expected to be costly, so to potentially help landlords meet these costs, the government could introduce grants or tax relief to encourage landlords to invest in energy-efficient renovations. W

"While this could mean short-term costs for investors, properties that meet the updated EPC standards are likely to become more attractive to tenants, which would increase rental yields in the long run”.

Property tax and council tax

Another significant area of interest is upcoming changes to property taxes, including council tax.

Tim added: "Some reports suggest that the government could introduce a flat-rate council tax system based on property values, replacing the current banding system. This could lead to higher council tax bills for more expensive properties but might benefit those with lower-value homes”.

Rental yields and property demand

As a way of keeping up with demand, rental yields could also be affected.

Tim explained: “Policies designed to make housing more accessible could have a knock-on effect on the rental market, as more affordable housing options could lead to increased demand for both private rentals and affordable homes.

"Investors in the rental market should keep an eye on these developments, as shifting government policies could impact rental yields. Any incentives for developers to build affordable housing could open up new opportunities for investors to target a broader segment of renters, particularly young professionals and families looking for cost-effective homes.

"This could further fuel demand for properties in areas where housing shortages are most acute, driving up property values”.