Key points of the spring budget 2024.
On the 6th March 2024, the much anticipated spring budget took place. This is widely expected to be the final budget before the next general election, and possibly the last under a conservative government. After all of the media hype we look at the key takeaways and how they may effect the mortgage / housing market in the UK.
What is the Spring Budget?
The term “Spring Budget” refers to an annual event held in the United Kingdom parliament. The Chancellor of the Exchequer (in this case Jeremy Hunt) delivers a financial statement to the House of Commons. This statement outlines the government’s plans for taxation and spending for the coming year.
It’s important to note that the Spring Budget is not the same as the Autumn Budget, which is another major financial statement delivered by the Chancellor later in the year. The spring budget outlines the current state of play and updates MP’s on the progress made since the Autumn budget.
Budgets are important as they affect every citizen and business within the UK.
Key points from the 2024 spring budget.
Here are some of the more relevant changes in the budget that will affect people with an interest in property.
- Stamp duty.
The abolition of stamp duty relief for those who are purchasing more than one property at a time. - Holiday Lets.
Plans to scrap the furnished holiday lets regime. The initiative gives tax reliefs on properties being rented out to holidaymakers and makes renting out to holidaymakers more profitable than to long-term tenants. - Capital Gains Tax.
The rate of property capital gains tax is to be reduced from 28% to 24%. Although this will only really benefit the higher rate earners. - Child Benefit.
The threshold to qualify for child benefit has been increased from £50,000 to £60,000. Child benefit income can be used in the affordability calculators of a lot of lender’s.
Top 5 mortgage deals right now.
Why inflation affects your mortgage.
Summary.
In summary there was little in the budget specifically related to the mortgage / property market. A few tweaks to existing schemes which mainly benefits the higher earners in any case. There was no immediate mention of support for first time buyers or offering an increase in low deposit mortgage schemes as expected. However, further details of these could emerge later in the year as we approach general election time.
Post compiled by Grant Carpenter CeMAP, CeFA – 15 years of regulated mortgage advice.
Please note that the content listed within this remortgage guide is purely for information purposes only and does not constitute advice.
