The recent Autumn Budget has brought several changes that could impact property owners. Whether you’re a property developer, owner, or investor, the Autumn Budget has implications for your property portfolio.
Here’s a breakdown of the key points and how they might affect you. By understanding these changes, you can make informed decisions to protect your assets and maximise their value.
capital gains shake-up
The headline change for property owners is the increase in Capital Gains Tax rates. From October 2024, the higher rate jumps from 20% to 24%, potentially impacting your exit strategy timing. This could incentivise property owners to hold onto properties for longer.
Social housing and affordable housing
The budget announced an increased investment in social and affordable housing. This could lead to more development projects.
The government is injecting fresh energy into the housing market with a £500 million boost to the Affordable Homes Programme. They’re targeting 1.5 million new homes this Parliament, supported by:
£3 billion in guarantees for SMEs and Build to Rent
£46 million for planning authority capacity
Focused regeneration in northern cities
building safety investment
Building safety remains a priority, with remediation investment increasing to over £1 billion by 2025-26, particularly focused on social housing improvements.
business rates relief
Some welcome news for commercial property owners – retail, hospitality, and leisure properties will receive 40% relief on business rates in 2025-26, capped at £110,000 per business.
property guardianship: a smart solution
These changes create both challenges and opportunities. While increased CGT rates might affect sale timing, the broader investment in housing and planning could create new development opportunities.
For those holding empty properties during this transition, property guardianship offers a practical solution to maintain security and generate income while navigating these changes.
Property guardianship offers a range of benefits, including:
+ Security: Guardians deter vandalism, theft, and squatting.
+ Maintenance: Guardians can help maintain the property and report any issues to us to resolve.
+ Community Enhancement: There are volunteer schemes in place for property guardians to give back to their communities such as the DEX Together initiative.
If you would like to find out more about our Guardianship service, please get in touch here.
