Key Updates from the UK Autumn Budget 2024
We’ve highlighted the main changes from the UK Autumn Budget 2024.
From tax updates to green initiatives, these measures shape the landscape for homeowners and investors. Here’s what you need to know to plan ahead.
AUTUMN BUDGET 2024 HIGHLIGHTS
- National Insurance Adjustments: Employer rate rises to 15%, with a reduced income threshold, impacting household budgets.
- Capital Gains Tax: Increased rates (18% lower, 24% higher) affect property investors.
- Fuel Duty Freeze: Continued relief for homeowners and renters amid cost-of-living pressures.
- Housing Investment: £5bn allocated for affordable housing, supporting first-time buyers and urban development.
- Public Services & NHS: £22.6bn directed to NHS and infrastructure improvements to reduce wait times and enhance local services.
- Green Initiatives: Carbon capture and clean energy projects advancing sustainable property value.
Introduction to Budget Changes
The 2024 Autumn Budget introduces measures focused on stability, growth, and housing market support.
This guide offers insights into how these changes affect mortgage planning, property values, and financial stability.
1. Fiscal Stability and Growth Initiatives
This Budget reflects a commitment to strengthening the UK economy with targeted investments in long-term stability.
By prioritising growth-focused policies, it aims to foster a stable environment for homeownership and positively impact property markets.
2. Tax Updates for Homeowners & Investors
- National Insurance Contributions: The increase in employer National Insurance contributions and lower income thresholds may impact household budgets, indirectly affecting mortgage affordability and spending.
- Capital Gains Tax: Adjusted rates of 18% and 24% for property investors mean strategic planning is essential for optimising returns and tax efficiency.
3. Housing & Public Infrastructure Investment
Over £5bn will support affordable housing initiatives and urban development, making market entry easier for new buyers and boosting property values in revitalised areas.
4. Living Cost Support Measures
A 6.7% minimum wage increase, along with adjustments to carers’ allowance and Universal Credit debt relief, provides essential household support.
These changes may influence affordability for those looking to enter the housing market.
5. Small Business Incentives and Economic Support
With the employment allowance now at £10,500, small businesses can benefit from tax relief.
This support boosts local economies and may stabilise nearby property values.
6. Environmental Investments for Future-Proofing
The Budget includes eleven new projects in carbon capture and green hydrogen, advancing clean energy efforts.
These initiatives aim to support sustainable living and could impact energy costs and home values.
7. Social Infrastructure and Educational Funding
Increased educational funding, including £6.7bn for school improvements, strengthens community infrastructure. This boost can enhance property desirability and positively affect property values.
8. Economic Reactions & Projections
Conservative Leader Rishi Sunak criticised the Budget as a “borrowing spree,” sparking debate on tax impacts and economic stability.
This discussion highlights the importance of proactive mortgage planning.
Implications for Mortgage Holders and Investors
- For Mortgage Holders: Adjustments to National Insurance and minimum wage will affect household budgets and could influence mortgage affordability.
- For Property Investors: Rising Capital Gains Tax rates make strategic planning essential to maximise returns, especially for property portfolios.
- For First-Time Buyers: Increased investments in affordable housing create more accessible entry points into the property market, although potential budget impacts should be considered.
At Pera Mortgages, we’re here to guide you through these changes.
For personalised advice on how the Autumn Budget 2024 may affect your property investments and mortgage options, contact us today.