In light of the Autumn Statement today (October 30th), Sowerbys brings you an overview of the essential points impacting the Norfolk and national property market.
Here’s what buyers, sellers, and property developers need to know:
1. Economic Growth Projections
The Office for Budget Responsibility (OBR) has revised economic growth forecasts, with an uptick anticipated for the next two years.
Longer-term projections for 2026 through 2028 indicate a slower growth rate than previously forecast. This outlook could influence interest rates, lending, and broader market conditions which will be critical to watch as they unfold.
Our local partners, from mortgage advice to wealth management are here to help.
2. Capital Gains Tax (CGT) Changes
There is an increase to Capital Gains Tax.
The lower CGT rate will rise from 10% to 18%, while the higher rate will increase from 20% to 24%.
The rates for residential property transactions remain the same at 18% for the lower rate and 24% for the higher rate.
There will be no increase on the 24% capital gains rate imposed on second homes.
3. Inheritance Tax (IHT) Adjustments
The government has extended the inheritance tax threshold freeze until 2030.
Estates will remain tax-free up to £325,000, increasing to £500,000 if a home is included and passed to direct descendants. Surviving spouses or civil partners can inherit up to £1 million tax-free.
From April 2026, the first £1 million in combined agricultural and business assets will be IHT-free, with assets above this threshold receiving 50% relief (a 20% effective tax rate).
4. Stamp Duty Land Tax Surcharge Increase
The stamp duty surcharge on second homes will rise by 2%, moving from 3% to 5% effective immediately.
This adjustment is part of a broader effort to temper demand in the second-home market, potentially creating a more favorable environment for first-time buyers.
5. Major Investment in Housing Supply
The government will spend £5bn on housing, including increasing the supply of affordable housing.
Affordable Homes Programme: Funding will increase to £3.1 billion.
Support for Small Housebuilders: £3 billion in guarantees and support aims to increase home supply.
New Housing Initiatives: The Budget provides for the renovation of sites across the UK, targeting the development of 2,000 new homes.
The government will reduce right-to-buy discounts, and local governments will retain the earnings from council housing sales to allow them to reinvest.
The government will hire “hundreds of new planning officers” to accelerate housebuilding.
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Our teams are on hand to help you navigate the Norfolk property market. Whether you're a homeowner, a landlord, or a property developer, pop into your local branch or call you local team.