What does the Budget mean for housing?

The country’s first female Chancellor, Rachel Reeves, delivered Labour’s first budget for 14 years, raising taxes by £40bn. What does it mean for housing?

Second homes

From 31 October, people buying a second home will need to pay an extra 2% of the entire property cost in Stamp Duty. The 3% rate, above standard residential rates on properties up to £250,000 will therefore rise to 5%.

Stamp Duty for first-time buyers (FTBs)

FTBs will continue to benefit from a raised Stamp Duty threshold until April 2025, meaning no Stamp Duty on properties costing up to £425,000. From April 2025, FTBs will need to pay Stamp Duty of 5% on the portion of the property between £300,000 to £500,000.

Property investors

Capital Gains Tax (CGT) is charged on the sale of assets, including second homes. The lower and higher main rates of CGT will increase to 18% and 24% respectively for disposals made on or after 30 October 2024.

Affordable Housing

The Chancellor announced £500m for affordable housing as part of a package worth £5bn to deliver 33,000 new homes, boost supply and support.