The Impact of the 2024 Budget on the Property Market | 2024 Budget Property Market Explained | SOLM Property
The Impact of the 2024 Budget on the Property Market in England: What It Means for Buyers and Sellers
The UK Government’s latest budget announcement has brought several major updates that will influence the property market across England in the months ahead. Whether you are a first-time buyer, an investor, or a homeowner looking to sell, understanding these changes is essential.
At SOLM Property, we know how important it is to stay informed when market conditions shift. This guide breaks down the key areas affected by the 2024 Budget and explains what they could mean for you if you are buying or selling a home in Chester, Cheshire, or across the wider North West.
1. Stamp Duty Changes: What You Need to Know
One of the biggest announcements in the 2024 Budget was the doubling of Stamp Duty on second homes. The move is designed to cool the buy-to-let and holiday home sectors, particularly in popular areas such as Chester and North Wales, where investment demand has remained strong.
This change means that buyers of second properties will now face a higher tax bill, which could cause some investors to rethink their strategies or focus on smaller purchases. Sellers of second homes or investment properties may need to adjust pricing to reflect this shift, particularly if targeting investor buyers.
For first-time buyers or those purchasing a main residence, the impact will be less direct, but it could still influence broader market dynamics by reducing overall demand at the higher end of the market.
If you are considering selling an investment property, you may find our article Selling a Holiday Let in Chester or North Wales useful.
2. Housing Supply and Government Incentives
The government has also committed to increasing housing supply, focusing on the delivery of more affordable homes. These initiatives aim to make it easier for developers to bring forward new sites and encourage construction in growth areas.
For buyers, this could improve access to new build homes, particularly in expanding communities around Chester and Cheshire. Developers and investors may benefit from grants or subsidies that make new developments more financially viable.
However, demand for well-located homes in established areas remains strong, meaning existing properties in Chester are still likely to see healthy competition and stable pricing.
3. Energy Efficiency and Green Initiatives
Sustainability continues to be a major government priority. The Budget includes further incentives for energy-efficient building and retrofitting older homes to meet higher standards.
This will likely increase construction costs for developers but also create opportunities for buyers and investors seeking greener, lower-cost homes. Energy-efficient properties are expected to become more desirable in the resale market as buyers look to reduce running costs and lower their carbon footprint.
4. Interest Rates and Mortgage Market Impact
The Budget also reinforced the government’s position on maintaining interest rate stability. While inflation remains a concern, policymakers aim to avoid sudden increases that could disrupt borrowing.
For buyers, this means mortgage rates are likely to stay relatively stable in the short term, though not necessarily fall dramatically. Buyers taking out fixed-rate mortgages should factor in that repayments may remain slightly higher than pre-2020 averages.
For sellers, this could influence demand at different price points. Homes that offer good value, particularly those under £500,000, are likely to remain popular as buyers look for affordability in an uncertain economic climate.
5. The Impact on Investors and Developers
Investors face both challenges and opportunities under the 2024 Budget. The higher Stamp Duty on second homes and ongoing adjustments to landlord tax reliefs mean buy-to-let investors will need to plan more strategically.
However, incentives tied to sustainable building and the creation of affordable housing could attract long-term investment into new developments. Developers working in growth areas, such as the outskirts of Chester or the Cheshire border, may see opportunities to benefit from new government support schemes.
Conclusion: How the 2024 Budget Shapes the Property Market
The 2024 Budget property market changes will affect buyers, sellers, and investors in different ways. With higher taxes on second homes, an emphasis on sustainability, and measures to boost supply, the property landscape is evolving once again.
For most sellers, the market remains resilient, supported by continued demand and stable interest rates. Buyers can still find good opportunities, particularly in areas like Chester and North Wales where lifestyle and location drive value.
At SOLM Property, we keep a close eye on economic changes to provide our clients with the best possible guidance. Whether you are buying, selling, or investing, staying informed is key to success.
If you would like tailored advice on how the 2024 Budget could influence your property plans, get in touch with our team today. We are here to help you make confident, informed decisions.
For a national overview, visit Rightmove’s property market insights for further reading.