Today’s main points from the first Labour Budget in 14 years which will affect the mortgage market and the house-buying process are:
- Wages increase across the board with all sectors of national wages increasing including apprentice wages. – meaning your affordability with lenders may increase alongside any pay rise you might receive.
- Stamp Duty – increase on stamp duty on to 5% additional property – anyone looking to buy a second home or Buy to Let property may be affected by this, please contact your broker or solicitor if you wish to find out more.
- Stamp Duty – thresholds will return to pre-September 2022 levels after March 31st 2025. Stamp duty liability will apply on sales values exceeding £125,000 instead of £250,000. Additionally, the first-time buyer stamp duty exclusion threshold will reduce from £425,000 to £300,000.
- An investment of £5bn in housing, which will increase the affordable homes programme to a budget of £3.1bn.
- In addition, £1bn will be spent on the removal of dangerous cladding, implementing the findings of the Grenfell inquiry.
- The ‘right-to-buy’ discount on people buying their council properties will fall and councils will be allowed to keep the full amount from sales.
- Capital Gains Tax – Gains are charged at 18% and 24%, depending on a seller’s tax threshold.
- Inheritance Tax remains largely unchanged, but unused pension funds and death benefits will now be included within the value of the deceased’s estate, which may push more probate cases into Inheritance Tax territory when combined with the value of a property.
If you feel like you need help and advice, please give us a call or send us an email. One of our expert brokers will be happy to help.
📞01733 367800
⌨info@agentisfinancial.co.uk
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*Your home may be repossessed if you do not keep up the repayments on your mortgage*
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