How could the autumn budget benefit sellers?
The new labour government will be announcing their new autumn budget on 30th October, but what could it mean for sellers?
Sellers may benefit from the Autumn Budget in a variety of ways, depending on what the Chancellor announces on October 30th.
1. Increased demand from first-time buyers: If the government decides to keep or raise the Stamp Duty Land Tax (SDLT) threshold for first-time buyers, it may increase demand for properties priced below £425,000. This could benefit sellers targeting first-time buyers by increasing their purchasing power, resulting in more transactions in lower-priced markets.
2. Capital Gains Tax (CGT) incentives: Sellers of second homes or investment properties may want to move quickly if CGT rates are expected to rise. CGT on residential property is now taxed at 18% for basic-rate taxpayers and 28% for higher-rate taxpayers. If these rates align with income tax bands (potentially rising to 40% or 45%), sellers may choose to sell their properties before the changes take effect to avoid higher taxes.
3. Potential SDLT reform: To stimulate the housing market, the government may extend SDLT relief or adjust thresholds. Additional reliefs for second-time buyers may ease the burden on those looking to move up the property ladder, driving market activity that benefits sellers.
While these potential measures may create opportunities for sellers, much depends on the final policies announced in the Budget.
