An Autumn Budget update
The much-speculated Autumn Budget 2024 has seen changes to both the property market and the recruitment/employer sector, and we’re here to summarise how this affects us, and possibly you.
How has the Budget affected the property market?
Many Budget announcements impact the property sector, including measures aimed at enhancing housing affordability, encouraging sustainable practices, and supporting regional development.
The good?
- Tax relief on upgrading energy efficiency, which means that if eligible, 5% or 0% VAT will be paid when certain energy-saving products are installed in your home
- Grants for energy efficiency, to help low-income and/or private rented homes achieve Energy Performance Certificate (EPC) Band C
- No changes will be made to the 18% and 24% rates of Capital Gains Tax that apply to residential property gains
£46m support to planning departments assisting in recruitment and training of graduates and apprentices into local planning authorities - Increases in minimum wage could increase affordability
- Plus, a £500m housing package going towards social housing and affordable homes
The not-so-good?
- Stamp Duty Land Tax (SDLT) for higher rates for additional dwellings is was increased from 3% to 5% from 31 October 2024, causing sales to fall through at the last minute
- This may be positive for home buyers in the short-term, but with effect 1st April 2025, SDLT for first-time buyers will be reduced from £425k to £300k, for home buyers reduced from £250k to £125k which means an added cost for all
Has the Budget affected employers and the recruitment industry?
Again, a mixed impact and response, but some of the positives include;
- Smaller companies will benefit from the Employment Allowance being increased from £5,000 to £10,500 – and with the £100,000 eligibility threshold being removed
- Additional funding to support labour market inclusion
And Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry has written a great piece on the opportunities for businesses given the contribution they are making – you can read more here.
Good news for some, less positive news for others, the Budget is always divisive.
We’re keeping on top of the latest property recruitment news, so read more of our blogs and contact us if you’d like to discuss more.
