Spring Budget 2024: Impacts on OneDome Users 


The 2024 Spring Budget held immense anticipation for prospective homeowners, especially with the general election looming ahead. As the Conservatives’ final major fiscal event before the election, expectations ran high for housing market announcements, including potential changes to the LISA rules and the introduction of a 99% mortgage. 


The LISA overhaul was however not announced, in place of initiatives like the British ISA for investing in UK equity.  


Although the Spring Budget 2024 didn’t meet certain anticipated adjustments, such as the overhaul of LISA rules, it did introduce initiatives like the British ISA. Money Saving Expert Martin Lewis explained via X that the LISA overhaul did not occur as the Chancellor aimed to ensure property prices were “definitely rising” before unveiling a “big home ownership package.” He also mentioned that the chancellor is looking towards a “LISA reform”. 


Whilst the budget didn’t meet some expectations, it did provide specific tax and stamp duty adjustments, which are likely to affect some homebuyers. This article lists those changes and the implications for those looking to take their next step on the property ladder.  


Stamp Duty Modification: 

Previously, homebuyers benefited from reduced stamp duty when purchasing multiple residential properties simultaneously, as opposed to buying them individually. However, as of June, this advantage will no longer apply.  

The rationale behind this decision, according to the Government, is the lack of evidence that such relief incentivised investments in the private rented sector.  


Capital Gains Tax (CGT) Amendments: 

One significant change in the budget was the reduction of Capital Gains Tax (CGT) from 28% to 24% for higher-rate taxpayers selling residential properties that are not their primary residences. While this reduction might encourage more property sales, critics argue that it disproportionately benefits wealthy property owners, allowing them to retain more profits from sales. 



Abolition of Holiday Letting Tax Breaks: 

Another notable change was the abolition of tax breaks for owners of furnished holiday lets, aligning them with buy-to-let properties in terms of taxation. While this adjustment may diminish the appeal of holiday letting, it could result in more properties entering the long-term rental market or being put up for sale, particularly in tourist hotspots. 


The Budget introduced some adjustments with potential ramifications for homeowners, albeit very specific subsections of the market. As the country heads towards the general election, the property landscape remains a pressing concern for many, as we hope to see more steps taken towards better house affordability for all.  

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