Wondering what the Autumn Statement means for your Norfolk home sale, purchase or development?
The Government delivered the statement on October 30th with a number of changes which could impact the National and Norfolk property market.
Analysis from the Sowerbys team looks at exactly what those changes mean for buyers, vendors and property developers.
Sales
Will Lightfoot, Sales Director:
“While we see stamp duty surcharge on second homes rise by 2% effective immediately, there will be no increase on the 24% capital gains rate for higher rate tax payers imposed on second properties.
"Our buyer motivation for purchasing a holiday home is almost always a lifestyle choice and not a financial one; Norfolk is popular for those seeking a peaceful escape and a home from home, somewhere for families to gather and memories to be made - we don't foresee this changing.
"Alongside this, we are lucky to live in a fantastic county and there continues to be an appetite for many to make it their permanent home; most prominently those moving from higher density areas, seeking a better-balanced lifestyle.
"We anticipate the Norfolk market to remain as strong as ever and Norfolk homes in demand.
"Capital growth in North Norfolk property has proven to be a wise investment. It is positive to see no changes to capital gains tax, therefore return on investment will not be affected.
"The Chancellor's commitment to building 1.5 million homes, backed by a £3.1 billion investment, is also a positive for first-time buyers in the region and a promising step towards increasing affordable housing to help address the chronic shortage of new build property for first-time buyers.
"This initiative will naturally boost economic growth and stimulate a range of related industries.
"The market has shown positive signs in 2024 vs 2023 in Norfolk; at Sowerbys we have seen an increase in buyer registrations, an increase in properties coming to market - and an increase in sales. We are confident this momentum will continue in 2025.
"I feel the budget is not too radical; it won’t create stirs in the market - and right now, a stable market is a good market. In summary, some positives and negatives for the property market but nothing which will impact Norfolk main home sales."
Lettings
Ed Tyman, Lettings and Operations Director:
"We are pleased capital gains tax will not increase for property sales, and we welcome this decision.
"While a more brave approach to stimulating investment activity would have been welcomed, I remain confident in the resilience and adaptability of the private rental market.
"Investors are likely to continue to see healthy rental returns and long-term capital growth, despite ongoing financial and legislative changes.
"Whilst of course, it’s disappointing to see the stamp duty on additional homes rise to 5%, the Norfolk rental market offers a unique opportunity for investors and is consistently recognised as one of the most sought-after areas of the UK to call home.
"This change will likely result in a decrease in available rental properties but drive future demand for rental price rises and the return on investment.”
New Homes
Harry Thompson and Richard Cheal, Land and New Homes Managers:
“Despite the stamp duty rise we continue to see people eager to make Norfolk their main home.
“Since the pandemic we have seen an ongoing shift in public perspective on lifestyle - with more people looking to make Norfolk their full-time residence.
“For those developing in the area we want to reassure you that we continue to see high demand in new home relocators.
“New homes for local buyers also continues to be an attractive proposition due to the low energy, low maintenance benefits.
“The Government also announced it will create “hundreds of new planning officers” to accelerate house building.
“Whilst it will take time to find these professionals, and with it only being one of several areas requiring improvement, it is reassuring to see the planning system in the spotlight along with investment pledges.
“One of the key metrics the Starmer government has set itself is to build 1.5m new homes – we are watching in anticipation to see how the Government further fulfills this promise and we are poised for a positive increase in delivery.
"Support for small housebuilders aims to increase home supply. Good news for fledgling developers in Norfolk.
"Additionally, subsidies for smaller developers are likely to encourage more diverse housing projects, providing both modern and affordable options across our region."
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The statement brings positive momentum to Norfolk’s property market.
Whether you’re buying, renting, or building in new homes, Sowerbys team are on hand to support you. Simply call or visit your local branch today.