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2024 Budget: Opportunities and Challenges for the Property Sector

Writer's picture: Vatche CherchianVatche Cherchian


UK Budget 2024 Property Impact

Our CEO, Vatche Cherchian, Provides His Reflections on the 2024 UK Budget Announcement: Opportunities and Challenges for the Property Sector

 

The property industry has been eagerly awaiting positive developments to support landlords and stimulate investment in the rental market. However, today’s budget brings a mixed bag of news that warrants careful consideration.

 

One notable change is the increase in Stamp Duty Land Tax (SDLT) for additional home purchases, moving from 3% to 5%. This adjustment raises some concerns for landlords and could potentially limit investment in rental properties. With the ongoing supply and demand imbalance in the UK rental market, such changes may lead some landlords to reevaluate their positions, impacting the availability of rental properties for tenants.

 

The effects of this decision may ripple through the market, particularly for tenants, as a decrease in rental properties could exacerbate the existing challenges, leading to further rent increases. This dynamic could also pose additional hurdles for first-time buyers, making the path to homeownership even more challenging.

 

On a more positive note, the government’s commitment to increasing housebuilding could provide a much-needed boost to the housing stock and facilitate greater property transactions. However, it’s essential to remain cautiously optimistic, given the mixed success of similar initiatives in the past.

 

While the decision to keep Capital Gains Tax (CGT) on residential properties unchanged is a welcome development, it is clear that this alone may not alleviate the concerns that the SDLT increase brings. Additionally, the absence of changes to the scheduled SDLT thresholds for 2025 may continue to complicate the landscape for first-time buyers, who could face increased costs in their pursuit of homeownership.

 

As we look to the future, the evolving environment for landlords, particularly with the upcoming Renters’ Rights Bill legislation, suggests that we must be adaptable and forward-thinking.

 

At Apex Housing Solutions, we are committed to supporting landlords during these changes. Our guaranteed rent service provides peace of mind by ensuring landlords receive a market-level rent throughout the tenancy, regardless of void periods. We also manage properties and cover tenant-related repairs, offering long-term tenancies that can enhance a landlord's return on investment.

 

Our agreements allow landlords to regain possession of their properties through traditional methods, which will be increasingly valuable as section 21 notices are set to be abolished. Importantly, we offer these services at no cost to landlords or agents, with no fees or commissions involved.

 

As we reflect on today’s budget, I encourage all stakeholders in our industry to collaborate on finding solutions that will benefit both landlords and tenants alike. Together, we can foster an environment where the rental market thrives and meets the needs of all parties involved.


Want to know more about how and why landlord's across London are benefiting from our Rent Guarantee services? Call us on 0203 030 4241 or email lettings@apexhousingsolutions.co.uk

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