Chancellor Jeremy Hunt has unveiled his Spring Budget, following speculation about potential alterations to stamp duty tax and the introduction of a 99% mortgage scheme. Despite expectations, his budget addressed only a few housing market points, affecting a minor segment of buyers and sellers.
Mortgage specialist Matt Smith commented, “Despite the significance of mortgages in 2023, they were surprisingly omitted from the 98-page document. The anticipated 99% mortgage scheme seems to have been discarded without a replacement, leaving first-time buyers and those with modest deposits in need of more inventive solutions to secure a foothold in the property market.”
Among the key points announced today:
Removal of tax breaks for furnished holiday lettings regime
The government currently grants tax advantages for furnished holiday short-term rentals. To increase available long-term rentals—especially in regions where such properties are limited for locals—Hunt intends to eliminate these tax breaks so that short- and long-term rentals are taxed equally. This change is scheduled for April 2025.
End of multiple dwellings stamp duty relief
Multiple dwellings relief aimed to promote investment in private rental housing. This would theoretically enable landlords to buy and rent out more properties due to reduced stamp duty. However, a review showed this relief wasn’t meeting its objectives, prompting the government to phase it out.
Were there any other changes to stamp duty?
There were requests to perpetuate the current stamp duty thresholds, which are due to expire in 2025, to assist homebuyers. Nonetheless, no such commitment was made in the Chancellor’s latest address.
Real estate expert Tim Bannister expressed disappointment at the missed chance to support first-time buyers and streamline the stamp duty system today. Without permanent thresholds, more people will face higher stamp duty rates next year unless the government revises them this Autumn.
For those planning a move and curious about potential stamp duty costs, our stamp duty calculator can provide estimates. The present stamp duty thresholds, set in September 2022, will remain until March 2025.
