House Prices and Stamp Duty
Labour has stated that the stamp duty nil rate band will revert to £300,000 from £425,000 in April 2025, which is not good news for first-time buyers. However, Labour says it will make securing a deposit easier under the Freedom to Buy scheme.
According to the Labour manifesto, overseas buyers will be expected to pay an extra 1 per cent stamp duty surcharge. Property experts are concerned about how this will impact their plans for wealth creation by attracting or deterring overseas capital and investment. However, these changes to stamp duty are not expected to significantly impact property prices or transaction volumes.
Further changes to mortgage rates are expected to have a greater impact on the housing market this year than changes to stamp duty or the Freedom to Buy scheme.
Overall, property price forecasts for the UK, Greater London, prime outer London, and the prime Country markets remain unchanged. These sectors, typically less susceptible to political fluctuations, tend to follow broader economic trends.
Investment Climate
The UK’s prime property market, a symbol of wealth and economic power, continues to be a hot topic in 2024. London and other major cities are home to this high-value sector, attracting investors from around the globe.
This market is more than just an economic indicator. It reflects the UK’s social and economic divides, with soaring prices raising concerns about affordability and inequality. These issues are central to the political debate, with Labour promising policies to tackle these disparities.
Despite Brexit-related uncertainty, the market has bounced back. A weak pound has attracted foreign investment, and limited high-quality properties have kept prices high.
Labour’s focus remains on social housing, affordability, and renters’ rights. It advocates for greater government intervention to create a fairer housing landscape.