Key Budget Updates: What They Mean for Newcastle, Sunderland, and Middlesbrough Housing Markets
The 2024 Budget, led by Chancellor Rachel Reeves, has introduced major changes that are set to impact the housing market across the North East. From stamp duty hikes on second homes to increased investment in affordable housing, homeowners, buyers, and landlords in Newcastle upon Tyne, Sunderland, and Middlesbrough will feel the effects. Let’s dive into the details and explore what it means for our region.
Stamp Duty Increases for Second Homes
Buying a second home in Newcastle, Sunderland, or Middlesbrough just got more expensive. The additional stamp duty rate on second homes has increased from 3% to 5%, effective immediately.
New Rates for Additional Properties
£0–£250,000: 5%
£250,000–£925,000: 10%
£925,000–£1.5m: 15%
Above £1.5m: 17%
Impact on the North East
These changes could dampen investor interest in areas like Jesmond in Newcastle, Seaburn in Sunderland, or Acklam in Middlesbrough, where second homes and buy-to-let investments are popular. As landlords sell off properties, the reduced supply of rental homes could push rents even higher in an already competitive market.
Stamp Duty Relief for First-Time Buyers and Home Movers Until 2025
Good news for first-time buyers in the North East: the stamp duty threshold remains at £425,000 until April 2025.
What This Means for Local Buyers
First-time buyers in Gosforth, Fulwell, or Marton can save on properties under £425,000.
After April 2025, the threshold will drop to £300,000, increasing costs for those looking to enter the property market.
For home movers, the £250,000 stamp duty threshold remains until 2025, before dropping to £125,000.
Capital Gains Tax Changes
Capital Gains Tax (CGT) on general assets has risen, but residential property rates remain unchanged at 18% for lower-rate taxpayers and 24% for higher-rate taxpayers.
Impact on North East Landlords
Landlords in Heaton, Ashbrooke, or Linthorpe looking to sell properties won’t see changes to residential CGT rates. However, those selling other assets will face higher rates, potentially limiting future investments in the property market.
Affordable Housing Investment
The budget includes £500 million for affordable housing, with plans to build 33,000 new homes nationwide. Local councils will also retain full proceeds from Right to Buy transactions, enabling reinvestment in social housing stock.
What This Means for Newcastle, Sunderland, and Middlesbrough
This funding could see new developments in high-demand areas like Walker, Grangetown, and Thorntree.
While these initiatives aim to alleviate the housing shortage, the benefits will take time to materialize, and immediate relief for renters and first-time buyers may be limited.
Dangerous Cladding Removals
The government has pledged £1 billion to remove dangerous cladding from high-rise buildings.
Regional Implications
While Newcastle, Sunderland, and Middlesbrough don’t have as many high-rise buildings as London or Manchester, developments like Quayside apartments or modern city-center flats could benefit from improved safety standards.
Challenges for Landlords in the North East
Stamp Duty Hikes
The increased 5% stamp duty rate on second homes will hit landlords in Jesmond, Ashbrooke, and Linthorpe hard, making it less appealing to invest in additional properties.
Rising Costs and Regulations
With tighter regulations, higher mortgage rates, and unchanged CGT on property, many landlords are reconsidering their portfolios. This trend has already led to 12.5% of properties for sale being former rentals, further reducing rental stock and driving up rents.
Opportunities for Buyers and Sellers in Newcastle, Sunderland, and Middlesbrough
Act Now Before 2025
First-time buyers and home movers in areas like Jesmond, Seaburn, and Acklam should act quickly to take advantage of current stamp duty relief before thresholds drop in 2025.
Quick Sales for Landlords
Landlords looking to exit the market can avoid the uncertainty of traditional sales by working with Home Sold Today. We offer cash purchases with completions in as little as 7 days, ensuring a smooth and stress-free process.
Final Thoughts: Navigating the North East Housing Market
The 2024 budget has introduced significant changes that will shape the housing market in Newcastle, Sunderland, and Middlesbrough. From increased stamp duty to a focus on affordable housing, the landscape is shifting.
If you’re a landlord looking to sell or a homeowner needing a fast, hassle-free sale, Home Sold Today is here to help. Contact us for a no-obligation cash offer and move forward with confidence.
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