The recent Autumn Budget, delivered by Chancellor Rachel Reeves, has outlined key changes impacting the UK housing market. For those looking to buy, sell, rent, or let property, the Budget brings a mix of new charges, opportunities, and government investments.
If you’re considering selling your property or moving to the area, take a moment to browse our Properties for sale in Wentworth Estate, Properties for sale in Virginia Water and the surrounding areas. If you have any questions, you can also browse through our even easier to use website or call us on 01344 843000 and email us.
Here’s the key out-takes for the property market from the full budget:
Increase in Stamp Duty for additional properties
A major change affecting buyers in the buy-to-let sector and second-home market is an increase in the Stamp Duty Land Tax (SDLT) surcharge. This surcharge, applied to additional homes, rose from 3% to 5% on October 31, 2024. The move aims to prioritise those buying a primary residence.
For landlords: If you’re in the process of buying, or thinking of buying a buy-to-let property, you should consider this higher cost carefully as while it adds an immediate expense, a stable rental market could make the investment worthwhile in the long run.
For tenants: Landlords may see higher upfront costs for property purchases, which could influence rental prices and availability. If the surcharge slows buy-to-let purchases, rental options might be more limited, potentially also impacting rental prices.
Non-UK residents: For Non-UK residents who purchase residential property, the existing 2% surcharge will remain in place.
If you’re thinking of selling: Accurate pricing of your property is essential, especially with the immediate increase in costs for those looking to purchase a second-home and buy-to-let investors. As buyers will be more price-sensitive than ever, setting the right price can attract serious interest and help your property to sell faster. Our team is ready to guide you through current market trends to find the best price for a successful sale. Contact us today.
Upcoming changes to first-time buyer relief
The Budget includes a key date for first-time buyers: March 31, 2025. Until this date, first-time buyers benefit from a higher SDLT threshold, paying no stamp duty on properties up to £250,000. After this date, the threshold is set to return to £125,000, meaning that first-time buyers may face higher costs in the future.
For first-time buyers: If you’re considering buying, acting sooner rather than later could save you thousands in SDLT, It’s worth noting that the time to complete a transaction averages around 4-5 months, so planning ahead is essential to beat the March date.
For sellers: With many first-time buyers looking to purchase before the deadline, this could present an opportunity to attract buyers seeking to avoid extra costs. Properties priced within the first-time buyer range may see increased interest in the coming months.
Capital Gains Tax remains unchanged
A widely speculated change to increase Capital Gains Tax (CGT) for property sales didn’t materialise as we had expected. For now, CGT rates for basic-rate taxpayers remains at 18% for residential properties.
For landlords: This may provide some stability for landlords that are already considering a sale, while others may now decide to hold on to them as there has been no increase. If you are considering selling, with the right strategy this could be an opportune time to assess your portfolio.
For buyers: An unchanged Capital Gains Tax rate could mean more landlords hold onto their rental properties, potentially keeping rental supply steady while also helping to stabilise property prices.
Government investment in affordable housing and energy efficiency
The government has committed £5 billion to Labour’s housing plan, which includes a £500 million boost to the Affordable Homes Programme. There’s also a £25 million investment in 3,000 energy-efficient homes nationwide, with a target for all of these to be affordable.
For home buyers and renters: These initiatives could increase the number of affordable homes available. Additionally, energy-efficient builds may offer future savings on utility costs, appealing to budget-conscious buyers and tenants.
For landlords: Energy efficiency is increasingly attractive to renters and may soon be essential for letting compliance. Government investments in energy-efficient builds highlight the growing emphasis on sustainable homes.
Business Rate changes and support for small businesses
From 2026–27, Retail, Hospitality, and Leisure (RHL) properties with a Rateable Value (RV) under £500,000 will benefit from lower business rate multipliers. Additionally, the small business rate multiplier will remain frozen in 2025–26, providing relief for small business owners.
For landlords with commercial properties: Lower business rates could make RHL properties more attractive investments. Small business owners renting these properties may find their rental budgets stretching further, potentially stabilising commercial rental markets.
The Mortgage Guarantee Scheme
The government has pledged to discuss making the Mortgage Guarantee Scheme, which supports lending at 95% loan-to-value, a permanent fixture. This scheme has been crucial for buyers with smaller deposits, especially first-time buyers.
For home buyers: A permanent Mortgage Guarantee Scheme would make higher loan-to-value mortgages more accessible. With the cost-of-living crisis ongoing, this is a step towards reducing barriers to homeownership.
For sellers: If the scheme is made permanent, demand for properties could rise among buyers with lower deposits, providing more potential buyers across the market.
To see the full budget and documents visit the Gov.uk website here
Current housing market dynamics
The housing market has picked up pace this autumn.
According to Rightmove: Sales agreed are up 29% year-on-year, and inquiries to estate agents are 17% higher, giving buyers more choice with a 12% increase in homes on the market. However, price growth remains sensitive, with only a 0.3% increase this month compared to the seasonal average of 1.3%. This data suggests that sellers may need to set realistic asking prices to attract offers, especially with higher mortgage rates impacting buyer budgets.
Stephen Lovelady, Head of Sales here at Barton Wyatt commented: Locally we have seen an increase in activity since the Autumn budget, as some buyers would have been sitting on the fence fearing worse for capital gains tax and stamp duty, especially at the higher end of the market. We are blessed at the moment with a good choice of quality property and some motivated sellers. That won’t last forever, especially given the further interest rate reductions forecast into 2025.
Following the Autumn Budget, the Office for Budget Responsibility forecasts that house price growth will average around 2.5% from 2026, suggesting a steady upward trend in the property market. If you’re considering buying, now could be a great time to explore our available properties and make an investment for the future. Take a look on our website to find your ideal home and start planning ahead.
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If you are thinking of moving to the area or buying a property to rent, make sure you take a look at our amazing portfolio of Properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about Properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.
