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2024 Budget: How it May Affect You as a Property Owner, Holiday Maker, Investor, Host, Guest, Landlord, or Tenant.

Updated: Mar 8

The budget announcement by Chancellor Jeremy Hunt has brought some significant changes in the property sector that may affect many homeowners, buyers and investors. Here is an overview of the main changes and their implications:

Stamp Duty Relief Abolished: The government is abolishing the stamp duty relief for individuals purchasing more than one dwelling. This means that anyone who buys a second home, a buy-to-let property or any other additional property will have to pay the full stamp duty rate on the entire purchase price. This decision was taken due to regular abuse of this provision.

The government explained this move by referring to an external assessment that showed it was often abused.

However, this has caused some concern among industry experts. Camilla Dell, founder of Black Brick, called it “shortsighted.” Many buy-to-let investors who bought multiple properties paid lower Stamp Duty Land Tax rates. Without this incentive, they may be put off from investing in the private rental sector, which could lead to higher rents for tenants.

Rob Houghton, CEO of Reallymoving, also expressed his frustration with the lack of action on stamp duty, especially for first-time buyers. Despite the challenges and costs they face, they have not received any assistance. The £425,000 stamp duty threshold will only last until next spring.

Sam Mitchell, CEO of another industry player, agreed with him, stressing that the government missed an opportunity to support the fragile housing market recovery in 2024.

Capital Gains Tax Reduction: Property gains tax has been reduced from 28% to 24%.

This means that anyone who sells a property that is not their main residence will pay less tax on the profit they make. This move is expected to increase revenues by encouraging more property transactions.

Holiday Lets Tax Incentives Scrapped: Tax breaks that made it more profitable for second home owners to let out their properties to holidaymakers rather than long-term tenants are being scrapped. The furnished holiday lettings scheme will be discontinued from April 2024.

The government states that this measure will level the playing field between holiday lets and other types of rental properties, as well as freeing up more housing for long-term renters.

According to the Chancellor, the Furnished Holiday Lettings tax regime "is creating a distortion meaning that there are not enough properties available for long term rental by local people" he said in the budget. These laws allowed landlords to deduct the full cost of mortgage interest payments from their rental income and pay lower capital gains tax if they sold up. "To make the tax system work better for local communities, I am going to abolish the Furnished Holiday Lettings regime." Scrapping it will raise £300m, says the Chancellor.

Non-dom tax status abolished:

Another major change that affects the housing and property sector is the abolition of the non-dom tax status. This means that anyone who lives in the UK for more than 183 days in a tax year will be taxed on their worldwide income and gains, regardless of their domicile. Previously, non-doms could claim the remittance basis, which allowed them to only pay tax on their UK income and gains, and on their foreign income and gains that they brought into the UK. The government said this reform will make the tax system fairer and simpler, and raise an extra £1.5 billion a year. However, some experts warned that this could have a negative impact on the prime property market in London and other areas, as many wealthy non-doms may decide to leave the UK or reduce their investments.

Regeneration schemes: Two regeneration schemes in London have already been highlighted in the Spring Budget.

Hunt promised to transform Barking Riverside and Canary Wharf with £242 million of investment.

The Chancellor said this would create 7,200 new homes in Barking and 350 homes in Canary Wharf.

Barking Riverside is one of London’s largest micro towns planed for the city. A total of 10,800 homes will be delivered, with 5,400 left to build. Half of the homes at Barking Riverside have been designated as affordable.

Hunt’s budget also celebrated the newly established Euston Housing Delivery Group, promising £4 million of funding for the delivery of 10,000 homes on the site that was earmarked for the scapped HS2 terminus station. A further £20 million of funding was earmarked for “social finance” to build 3,000 new homes via local community groups.

In conclusion, these changes aim to create a fairer and more sustainable property market, as well as raising funds for public services and reducing the deficit. However, they may also have some negative impacts, such as reducing the supply and affordability of holiday accommodation, discouraging investment in the property sector and affecting the wealth and income of many property owners.

Below, you’ll find an overview summarising the potential consequences of these reforms.


Impact Matrix 

Guest/Holiday Maker

Short stays may become more expensive as more hosts exit the business, leading to fewer available properties and higher prices.


Landlord/Property Owner


They may have to exit the business or decide to sell the property and revert to longer-term rentals.



Reduced income as rent-to-rent (R2R) arbitrage fizzles out.

However, if a host survives and the number of short lets decreases, steady demand may lead to higher rates and long-term income.



More homes may revert to long-term tenancy models, increasing rental stock and potentially driving down rent prices.



If landlords exit the rental market entirely (short or long term), more properties become available, potentially lowering prices and creating a buyer’s market for investors.


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