Budget 2024

The outlook and actualities within the prime property market.

Anticipation is high for the upcoming Budget announcement, and stakeholders in the prime residential sector are navigating a mix of optimism and pragmatism. They understand that policy changes could yield both opportunities and challenges.

Stamp Duty Realities:

There's a persistent demand for a reduction in Stamp Duty Land Tax (SDLT) within the prime property circles. However, there's a recognition that political realities might limit the extent of any potential cuts. Some propose freezing SDLT for downsizers as a targeted measure to stimulate the housing market.

Rethinking Tax Structures:

Calls for reforming tax structures are gaining traction, with suggestions for exploring alternative models like an annual levy. The aim is to learn from global examples and initiate discussions on more efficient tax systems.

Global Buyers and Market Dynamics:

Discussions around potential tax hikes for international buyers raise concerns about their impact on the prime central property market. Balancing the need to attract global investments while safeguarding local market dynamics emerges as a critical consideration for policymakers.

Inheritance and Capital Gains Tax:

Speculations about reforms in Inheritance Tax underscore the potential for significant shifts in wealth management and estate planning. However, the complexities involved suggest that complete abolition might not be feasible, necessitating incremental changes.

Revamping Investment Incentives:

There's a growing consensus around recalibrating tax incentives to incentivize greater investment in property. Reintroducing measures like mortgage interest relief and tax breaks for landlords could address the shortage of rental properties and benefit both investors and tenants.

As the Budget speech approaches, the prime property sector remains poised for potential transformations. While hopes run high, stakeholders are prepared to navigate the nuanced landscape of policy changes with resilience and adaptability.