Autumn Budget: What landlords need to know
Autumn Budget: What landlords need to know
It’s unusual for there to be such a long gap between a government coming to power and the delivery of its first budget, giving us plenty of time to speculate on measures that might be included. But the Chancellor has finished speaking now, and while it will take a little time for the full implications of the autumn budget to become clear, here’s a summary of the key changes which impact the property rental sector.
Firstly, there are moves which affect the cost of employing staff.
- An increase to the minimum wage which increases to £12.21 (at Age 21) from April 2025. There are plans to phase in a single adult rate.
- Employers NIC (ENIC) is increasing to 15% and the threshold at which it is paid is reducing from £9,100 to £5,000. However, the Employment Allowance is being increased which means some small businesses won’t pay ENIC.
Business rates were due to rise from April 2025 after the expiry of a 75% discount. A smaller discount of 40% will now apply, capped at £110k.
Capital Gains Tax is increasing, but not for residential property which retains its 18% and 24% rates. For other asset sales the lower rate moves from 10% to 18% and the higher rate from 20% to 24%.
On Inheritance Tax, thresholds remain frozen.
The stamp duty surcharge on additional homes increases from October 31, 2024, with the rate rising from 2% to 5%.
On wider housing issues:
- The government plans to invest £3.1bn in the Affordable Homes Programme.
- There is to be support for small housebuilders.
- Right to Buy discounts will be reduced.
- Local authorities will reinvest receipts from any social housing sales into existing stock or new supplies.
