Budget 2024: A New Chapter for Home Buyers and Property Investors

How Hybrid Financial can help you make the most of the upcoming housing changes

With Chancellor Rachel Reeves set to deliver Labour’s first budget on October 30th, home buyers and property investors across the UK are keenly anticipating what this might mean for them. This budget comes at a time of evolving policies and fresh initiatives aimed at addressing housing affordability and supporting buyers amid changing economic conditions.

At Hybrid Financial, we understand that these potential shifts can feel like a maze. Our goal is to turn these complexities into opportunities, helping you secure the right property and investment options with confidence. Here’s a preview of the expected announcements and how Hybrid Financial can help you navigate these changes.

1. Stamp Duty Adjustments: What They Could Mean for You

Stamp duty has long been a significant factor in home buying decisions. Currently, first-time buyers enjoy stamp duty exemptions up to £425,000, but this threshold is set to revert to £300,000 in 2025. Additionally, the general threshold for all home buyers could see adjustments, especially for those moving to larger properties.

How We Can Help: At Hybrid Financial, we’ll guide you through any stamp duty changes and help you understand how they impact your buying power. Whether you’re a first-time buyer or planning to upsize, our team can offer tailored advice to make the most of your budget.

2. The Freedom to Buy Scheme: Lowering Barriers for First-Time Buyers

Labour has proposed a "Freedom to Buy" scheme, which may provide enhanced access to low-deposit mortgages, especially for first-time buyers. This initiative could be a valuable step towards making homeownership more accessible, especially in high-demand areas where affordability has been a barrier.

How We Can Help: We are here to demystify this scheme and explore how it could benefit you. With Hybrid Financial by your side, you’ll be prepared to seize any new support opportunities, making it easier to take that first step onto the property ladder.

3. Capital Gains Tax Adjustments: Implications for Investors

Speculation around potential capital gains tax (CGT) adjustments has caught the attention of investors. If rates rise, it could mean increased costs for property investors and buy-to-let landlords, possibly impacting overall returns.

How We Can Help: For our investor clients, Hybrid Financial is ready to assess how these tax adjustments might impact your portfolio and advise on strategies to optimize your investments. We focus on aligning your goals with tax-efficient options, ensuring you’re well-positioned regardless of market changes.

4. Investment in Affordable Housing: Increasing Opportunities

Labour’s budget is likely to include increased funding for affordable housing projects. This commitment could mean a larger supply of housing options, potentially easing price pressures and broadening choices for buyers.

How We Can Help: As new affordable housing projects emerge, Hybrid Financial can help you navigate the opportunities within this segment, ensuring you have access to a wider range of properties at competitive prices. We’ll keep you informed on where to find these developments and how they fit into your long-term plans.

5. Minimum Wage Increase: A Boost for Affordability and Homeownership

Starting in April, the national minimum wage will rise to £12.21 per hour—a 6.7% increase that brings over 3 million low-paid workers a pay rise worth around £1,400 annually for full-time employees. For young workers aged 18-20, wages will rise even more significantly, from £8.60 to £10 an hour, marking the largest recorded increase in this age group and potentially adding up to £2,500 in yearly income. Labour’s Chancellor Rachel Reeves describes this increase as a “genuine living wage for working people.”

Though this wage hike falls slightly below the Living Wage Foundation’s rate, it’s an impactful step towards enhanced financial security for lower-income households. With added income, more individuals may find homeownership and investing more achievable, especially with a skilled partner like Hybrid Financial by their side.

How We Can Help: At Hybrid Financial, we know that every increase in buying power can make a difference in your journey towards homeownership or property investment. Our advisors are here to guide you in making the most of these changes, helping you navigate budgeting, mortgage options, and investment opportunities in a way that fits your evolving financial profile.

Supporting You Through Change

The housing market is evolving, and Hybrid Financial is committed to helping you stay one step ahead. We pride ourselves on providing personalized advice that adapts to your unique circumstances, turning potential budget challenges into opportunities.

If you’re considering buying a home or investing in property, we’re here to provide clarity, answer your questions, and ensure you make informed, confident decisions in a rapidly changing market.