This week Chancellor Rachel Reeves gave the Spring Statement. Unlike the Autumn Budget back in October, the Spring Statement brought fewer updates for the property market.
Will Labour reach its 1.5 million new homes target?
Labour has already set an ambitious target for new homes: 1.5 million new homes to be built during this parliament.
In the Spring Statement, Rachel Reeves announced a grant of £2 billion which would help build up to 18,000 new homes in England.
According to the Office for Budget Responsibility (OBR), reforms to the planning system would bring housebuilding up to a "40-year high".
These reforms are projected to result in an additional 170,000 homes built by 2029-30. The OBR predicts that the economy will grow 0.2% by 2029-30 thanks to these reforms.
They also went on to confirm that these changes bring the Labour government close to achieving its 1.5 million homes goal, projecting they will build 1.3 million homes before the end of their parliament.
Inheritance Tax thresholds remain frozen
In the Autumn Budget Rachel Reeves announced that Inheritance Tax thresholds would be frozen until at least 2030, and there was no new information provided in the Spring Statement.
Inheritance Tax thresholds had originally been frozen until 2028 by the former government, and the extension of this freeze means the tax should provide more revenue.
This is largely because, as property values have increased over the years, many households will have to pay more in Inheritance Tax as their property pushes them past the threshold of £325,000.
Stamp Duty changes coming into effect
There had been some hope for a U-turn on the end of the Stamp Duty Land Tax (SDLT) holiday, especially for first-time buyers.
During the Stamp Duty holiday, first-time buyers wouldn't have to pay any Stamp Duty on properties worth up to £425,000.
With nothing in the statement about Stamp Duty, it means that the holiday is officially ending on the 1st of April. Moving forward, first-time buyers won't have to pay Stamp Duty on properties up to £300,000.
If you're a first-time buyer or would like to ask a question, please get in touch with your nearest branch to speak with a local property expert.
Find out how much Stamp Duty you'll have to pay on your next home with our free Stamp Duty calculator.
If you're thinking of moving into a new home this year, we'd recommend getting started with a FREE property valuation from a local expert.
Your Move E-Marketing Executive
