How Does Autumn Budget Impact Bury St Edmunds Property Market?

How Does Autumn Budget Impact Bury St Edmunds Property Market?

Now the dust has settled on Labour’s first Budget in this term, there is an opportunity to consider how this impacts you. A lot of people have had their say, with a lot of wailing from some quarters. At Coakley & Theaker, we are focused on providing you with insight tailored to your needs, so stick with us to learn everything you need to know.

Key points from Autumn Budget relating to property market

Zoopla list the key points, relating to the UK property market, in the Autumn Budget as:

·         Stamp duty increased to 5% on second homes

·         Higher stamp duty thresholds remain in place for first-time buyers and home movers until April 2025, but are set to be lowered after then

·         Capital Gains Tax increased but rates on residential property sales to remain at 18% and 24%

·         £500 million pledged for affordable housing

The current stamp duty bands for someone buying a second (or additional property) are:

·         For the portion between £0 - £250,000 - 5% stamp duty

·         For the portion between £250,000 - £925,000 - 10% stamp duty

·         For the portion between £925,00 - £1.5m - 15% stamp duty

·         For the portion above £1.5m - 17%

What are the leading property portals saying about the changes?

It makes sense to turn to the leading property portals for their opinion when significant changes are made to the property market.

Zoopla Executive Director of Research, Richard Donnell, says: “The private rented sector has seen static supply since tax changes were introduced in 2016. There is a steady net selling by landlords in response to changes in tax policies, alongside greater regulation of housing and higher mortgage rates. We need to keep as many landlords as possible in the market to provide choice for renters who are currently facing limited options.  Rents rising faster than earnings is hitting those on the lowest incomes the hardest.”

Rightmove’s Tim Bannister, said: “Increasing stamp duty on additional home purchases means that, based on the average asking price for a home, a landlord could face an additional charge of more than £7,000 from tomorrow. In the short-term, some landlords may need to pause for thought, but in the longer-term we expect it becomes another charge that landlords become accustomed to considering.”

What does it mean for you?

If you are looking to sell your home, the increase in stamp duty for second-buyers might impact you. There is a chance this increase will persuade some landlords or property investors to avoid increasing their property portfolio. This has the potential to lower the number of potential buyers in a market.

We think there are enough buyers looking to purchase property in Bury St Edmunds to live in to mean you don’t need to worry about this. It’s not great when the overall demand for housing falls, but there will still be buyers.

If you are looking to buy a home, seeing landlords and investors drop out is a positive factor. This means you aren’t competing against them in the market, which should theoretically improve your chances of finding a home.

Of course, in turn, this might lead to more buyers in the market, negating the drop-off from landlords, meaning there’s little difference. And if you take that train of thought on, that’s good news for owners considering selling their property.

One thing we’ve learned in our many years of estate agent work is that its important to not look at matters in isolation. Yes, on the surface, the increase in stamp duty for second-home purchases should see fewer buyers in the market for property. However, the impact of that changes other people’s behaviour and before you know it, the market is continuing without much difference!

Whatever your position is in the property market, we can help. We have considerable experience in connecting sellers with buyers, and we are confident we’ll help you make an informed decision as to your next move.

Contact Coakley & Theaker for all your Bury St Edmunds property market needs

At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.