The infamous Autumn Budget 2024 has been on many landlords’ nerves lately. If you’re not stressed about it, you’re either not a landlord or Pink Elephant’s got your back. With new changes in place, you might need some help understanding what’s ahead.

That’s why we’ve broken it down for you, so you can stay informed and ready for what’s to come. Keep reading to see how the latest budget impacts you.

What is expected in the Autumn Budget 2024 for UK Landlords?

There’s a lot to unpack about the Autumn Budget 2024 UK, and not all of it sounds like music to a landlord’s ears. But, while it’s not all sunshine and rainbows, understanding these changes can help you stay ahead of the curve and keep your profits in check. Here are the key changes you should know:

Tax changes

We all know tax talk can get a little dry, but stick with us – there’s some important stuff here that could directly impact your wallet.

Increase in Stamp Duty Land Tax (SDLT)

If you were planning on snapping up a new property, brace yourself. From October 31st, 2024, the SDLT surcharge for landlords purchasing additional properties has increased from 3% to 5%.

• Let’s say you buy a property for £200,000. You’ll now pay £10,000 in SDLT, up from £6,000.
• Properties valued between £250,001 and £925,000 will now incur a total SDLT of 10%, up from 8%.
• Corporate buyers purchasing properties over £1.5 million face an SDLT hike from 15% to 18%.

These changes aim to prioritise first-time buyers by reducing competition from landlords and investors. While that sounds great for buyers, it could limit rental supply and drive up rents as demand continues to rise – a cost that often ends up on tenants’ shoulders.

Income Tax threshold freeze

If you were hoping for some relief on income tax or national insurance thresholds in the Autumn Budget 2024, you’d need to hold tight. The freeze on thresholds is sticking around until April 2030.

For landlords, this might push you closer to a higher tax bracket, especially if your rental income grows. While it’s not a direct tax increase, the freeze can still chip away at your profits over time as inflation does its thing.

Capital Gains Tax (CGT) rates held steady

Good news for a change – the CGT rates for landlords have stayed put. If you’re selling a buy-to-let property, you’ll still pay:

• 18% as a basic-rate taxpayer
• 24% as a higher-rate taxpayer

This stability brings a sigh of relief, especially for those considering selling. At least for now, there’s one less thing to worry about.

How these increased costs can affect the rental market

With higher SDLT and ongoing tax freezes in the Autumn Budget 2024, UK landlords may hesitate to invest in new properties. This could lead to:

• Fewer properties are available to rent, and supply is shrinking in an already competitive market.
• Higher rents, as demand continues to outweigh supply, potentially impacting tenant affordability.

Understanding these dynamics can help you adjust your strategy, whether it’s retaining existing properties or tweaking your rental prices in tenancy agreements to reflect market trends.

Energy Efficiency Mandates: Budgeting for a greener tomorrow

It’s no secret – the planet’s in trouble, and the government’s doing its part through the previously introduced Warm Homes Programme and now the budget to make sure landlords are part of the solution. If you own older properties, it’s time to start thinking about energy efficiency, because the budget is making it clear that this is the way forward.

• With £5 billion allocated over the upcoming two years to support the transition towards a more productive and environmentally sustainable agricultural sector in England

• This investment includes over £400 million for tree planting and peatland restoration, which may indirectly influence housing development and land use in rural areas

While these reforms might not directly affect your portfolio today, they’re set to influence future rental demand and property availability. By staying informed, you can adapt your strategy and appeal to eco-conscious tenants looking for greener homes. For a deeper dive into the UK rental market trends shaping 2024 and beyond, check out our blog here.

Conclusion: Planning for a post-budget landscape

The Autumn Budget 2024 throws a few curveballs at landlords, but it’s not all doom and gloom. Here’s how you can stay ahead:

• Reassess your portfolio: Focus on high-performing properties or those with growth potential.
• Explore energy efficiency grants: Upgrading your properties might cost less than you think.
• Keep up with market changes: Follow housing initiatives and tenant protections to ensure you’re always compliant.

Our agents at Pink Elephant are here to help you navigate these changes and turn challenges into opportunities. Whether you’re looking to adapt to tax changes, stay ahead of market trends, or optimise your property portfolio, we’re here to help. 

Get in touch with us today to stay one step ahead in the property game. Together, we’ll make sure you’re not just keeping up but thriving in a post-budget world.

FAQs

When is the Autumn Budget 2024?

The Autumn Budget 2024 announcement was for 30th October 2024.

What to expect from the Autumn Budget 2024​?

The Autumn Budget 2024 encompasses many topics, including:

• Inheritance tax
• Pensions
• Stamp Duty Land Tax (SDLT)
• Capital Gains Tax (CGT) etc.

When is the next UK budget?

If there’s no budget in the spring and Shadow Chancellor Rachel Reeves decides on just one major fiscal event each year, the next UK Budget will likely be in the autumn of 2025.