Autumn Budget: what it could mean for the buy-to-let property market

The Autumn Budget (announced in late October 2024) included measures that may influence the property market—particularly for landlords, second-home investors and holiday let owners. While the impact will vary by individual circumstances, the main themes are changes to stamp duty, Capital Gains Tax (CGT) and housing supply policy.

Below is a landlord-focused summary of the key areas that may be relevant when planning to buy, sell, let or expand a portfolio.

Stamp duty changes and what they can mean for landlords

Stamp duty can be an immediate cost pressure in property transactions. In the Budget, stamp duty treatment for buyers was described as remaining in place for now, with thresholds applying until a planned end date.

For investors, the practical takeaway is that stamp duty can affect:

• The total cost of acquiring additional properties (including buy-to-let and second homes)
• How quickly landlords can act if a change is expected after the stated end date
• Negotiation dynamics—higher acquisition costs can influence seller expectations and buyer offers

If you’re considering adding to a portfolio, it’s helpful to treat stamp duty as part of the wider “all-in” affordability picture rather than a standalone figure.

Capital Gains Tax (CGT) updates: potential impact on portfolio decisions

CGT is a key consideration for landlords when selling an asset that has increased in value. The Budget included changes to CGT rates, which may affect the net proceeds from disposals.

In broad terms, CGT is charged on gains when you sell certain assets—commonly relevant to landlords selling buy-to-let properties, and also to owners of second homes or holiday lets.

Potential knock-on effects for the buy-to-let market include:

• Fewer sales from some landlords if the after-tax outcome is less favourable
• More focus on timing (for example, when a property is sold versus held)
• Greater attention to overall portfolio performance, not just rental yield

Because CGT is personal to the taxpayer and depends on multiple factors, it’s important to stress-test any sale plan against your likely tax position.

Second homes and holiday lets: wider market effects

The Budget’s CGT and stamp duty themes can also be relevant to owners of second homes and holiday lets. Even where a policy change doesn’t directly target a landlord’s core buy-to-let strategy, it can still influence:

• Investor demand for certain types of property
• Competition for properties in specific areas
• The availability of stock if some owners decide to hold rather than sell

For holiday let owners, changes in the cost of acquiring or selling can affect decisions around whether to continue operating, switch usage, or restructure holdings.

Housing supply measures and build-to-rent incentives

Alongside tax and investment changes, the Budget also pointed to measures intended to support housing supply. For the rental market, the direction of travel matters:

• More supply can reduce pressure on rents over time (though timing and local conditions still vary)
• Build-to-rent incentives and planning reforms may encourage purpose-built rental development
• Private landlords may face stronger competition in some segments if additional rental homes come to market

While supply initiatives are not instant fixes, they can influence longer-term expectations for availability and pricing.

What this could mean for tenants

Tenants are affected indirectly, but often noticeably. If acquisition and tax costs rise for landlords or investors, it can influence:

• Portfolio expansion plans (whether landlords add new properties)
• How quickly landlords respond to market opportunities
• Rental pricing pressure, particularly where supply is tight

At the same time, if supply measures increase the number of rental homes available, that can help moderate rent growth in the longer term.

Key points to consider as a landlord

When reviewing your next steps in light of the Autumn Budget, it can help to focus on the areas most likely to move the dial:

• Transaction timing: whether stamp duty changes could affect the cost of buying or selling
• Exit planning: how CGT updates may influence the net result of a sale
• Portfolio strategy: whether to hold, expand or rebalance based on expected after-tax returns
• Market conditions: local supply and demand can outweigh national policy in the short term

Sources

• Autumn Budget 2024 (UK Government): https://www.gov.uk/government/topical-events/autumn-budget-2024
• CGT overview (BBC News): https://www.bbc.co.uk/news/articles/cx25w7qpr0yo