Reflecting 2024

What were the key takeaways in 2024?

The Renters Reform Bill is still being discussed with no change, as of yet, but we all wait with baited breath as to what will happen and more importantly what the new landscape will look like and how to adapt to these imminent changes.

The election brought a last minute surprise increase in Stamp Duty for investment properties. This did catch a lot of BTL landlord's out forcing them to exchange on the same day this announcement was made or be forced to pay an extra 5% SDTL on their purchase - ouch!

Conversely first-time buyers are exempt from stamp duty up to £300,000, as long as the property price is no more than £500,000. In high-priced areas like London this presents additional challenges for those stepping onto the property ladder.

The government addressed the capital gains tax (CGT), a key consideration for property owners and investors. The Budget retained the current CGT allowance at £12,300, allowing gains up to that amount to be tax-free, with current rates held at 18% and 24%.

Emission targets are a big topic and we can't ignore the built environment & buildings contribute to high emissions. What does this mean for housing? Well, we are starting to see a lot more momentum in this area. The obvious one being that rental properties have to be graded a minimum grade C (by 2023) in order to be rented out. But more recently in December 2024 we heard that lenders are going to release products according to EPC ratings. This is to say properties with higher EPC ratings qualify for high lending than those with lower EPC ratings where lending will not be as high. Naturally this will force buyers to narrow their searches to find higher energy efficient homes to get higher lending. And for those with lower EPC ratings, this will incentivise these owners or investors to improve their ratings.

We finally saw two Base Rate cuts in 2024 bringing the base rate to under 5% for the first time since Covid! Although we were hoping to see probably more before Christmas, the Bank of England's decision is heavily influenced by inflation data.

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