Wed, 30 Oct 2024 | Landlords


Chancellor Rachel Reeves has announced the 2024 Autumn Budget and it didn't bring any major shifts. Minor updates to stamp duty on second homes reflect a general government approach to steadying revenue without drastically altering the property investment landscape. Here’s a quick overview of relevant updates and their potential effects on the lettings market:

The breakdown


Capital Gains Tax (CGT):

CGT rates have increased, with the lower rate rising from 10% to 18% and the higher rate from 20% to 24% on profits from selling assets like shares or non-residential investments. Importantly, these new rates do not affect residential property, where CGT remains at 18% and 24% for basic and higher rate taxpayers, respectively.

Stamp Duty Thresholds:

Effective from tomorrow, the stamp duty surcharge on second homes will rise from 3% to 5%, increasing costs for landlords purchasing additional properties. This adjustment is likely to deter some from investing in the Buy-to-Let market and thus potentially further reducing the supply of much needed private rented stock. Potentially increasing rents in the future.

Inheritance Tax (IHT):

The inheritance tax threshold freeze has been extended to 2030, meaning estates up to £325,000 remain tax-free, with additional exemptions for primary residences and spouses.

Income Tax:

Notably, there has been no mention of any increase in landlord income tax. This suggests that there will be no immediate impact on landlords’ rental income from their properties, allowing them to retain current income levels without additional tax burdens.


In summary, the Autumn 2024 Budget offers a blend of continuity and modest changes for landlords, with notable increases in stamp duty for second homes. While the updated stamp duty and inheritance tax freeze may affect investment decisions and estate planning, the absence of changes to income tax on rental earnings provides a welcome stability for landlords’ ongoing revenue.

For tailored advice on managing your property investments in light of these updates, contact your local Prospect Estate Agency office. We’re here to support you in navigating these changes and optimising your portfolio for future growth.

Contact our team