The Labour government’s 2024 budget is promising transformative effects on the UK property landscape, focusing on making homeownership more accessible and supporting both new and existing landlords. The budget introduces targeted tax policies, revitalisation incentives, and sustainability-focused reforms, all designed to positively impact homeowners, developers, and renters.
For first-time buyers, Labour’s budget demonstrates a continued commitment to housing affordability. While the previous increase to the Stamp Duty relief threshold will revert to £300,000 in April 2025, the budget’s focus on affordability and accessibility highlights Labour’s emphasis on helping new buyers get onto the property ladder. By investing in affordable housing and promoting mortgage accessibility, the government is addressing the housing needs of younger buyers and those entering the market, creating conditions that aim to keep entry-level homes within reach
Landlords in the private rented sector can also expect fair and manageable changes. Although Labour was expected to hike Capital Gains Tax (CGT) for secondary properties, it opted not to increase CGT rates on these assets, a move designed to keep rental properties available in the market. This approach offers landlords stability, allowing them to retain or expand their property portfolios without fearing excessive tax penalties. Additionally, the government’s strategy for taxing second homes and holiday rentals—targeting only new acquisitions and foreign-owned properties—protects existing rental property owners, giving them an opportunity to continue supporting housing supply in the rental market
Labour’s budget takes a forward-looking approach by supporting sustainable urban renewal projects. The introduction of ‘local enterprise zones’ in key regions offers tax breaks and incentives to developers willing to invest in affordable housing and retail spaces. For landlords and homeowners, this measure is likely to revitalise neighbourhoods, increase property values, and make areas more attractive for potential renters and buyers. These zones, combined with targeted sustainability initiatives for retail and hospitality properties, make it easier for businesses to reduce energy costs and work toward net-zero goals, further benefiting communities
To ensure renters can access quality housing, Labour has maintained policies that support private rental markets and stabilised rental costs by preventing drastic tax increases on existing landlords. By maintaining tax reliefs for established landlords while introducing minimal tax adjustments for new or speculative property investments, Labour aims to preserve housing supply and rental affordability. This balanced approach enables landlords to continue offering competitive rents, while also attracting new landlords and investments into the rental sector
Labour’s budget strives to address the complex needs of the property market by combining affordability with support for sustainable growth and fair taxation. For homeowners, it offers affordability measures and support for home values through community investments. For landlords, it provides balanced tax policies that encourage continued investment without imposing undue burdens. Together, these initiatives reflect Labour’s commitment to building a fair and accessible housing market that supports both current property owners and those aspiring to own homes in the future.
If you would like more information or to discuss Landstones opinion on the budget please feel free to get in touch with our friendly and knowledgeable team. As an independent estate agent in West London Landstones are able to offer an impartial opinion on the London property market. So if you are looking for apartments for sale in West London or apartments to rent in West London we are here for you. Alternatively if you are thinking of selling your family home in London or would like a property valuation in order to help you decide we would be happy to assist in any way we can.