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14 December 2024
The 2024 Autumn Budget has introduced measures affecting the UK property sector, including business rate reforms, affordable housing initiatives, and infrastructure investment. Here are the key highlights that will impact the property industry.
Business rates reform
Permanent lower multipliers for retail, hospitality, and leisure properties: Starting in 2026-27, business rates for retail, hospitality, and leisure properties will be permanently reduced, aiming to support high street businesses. To balance the cost, properties with rateable values above £500,000 will face a higher multiplier.
Interim support in 2025-26: For the year 2025-26, the small business multiplier will be frozen, protecting over a million small properties from inflation-related increases. Businesses in the retail, hospitality, and leisure sectors will also receive a 40% rate relief (up to £110,000 per business).
Industry consultation: A discussion paper on business rates has been released, inviting input from property professionals to shape a fairer system. The Valuation Office Agency (VOA) has also committed to increased transparency, responding to the 2023 consultation on business rate disclosures.
Housing market initiatives
Increasing housing supply: The government plans to address the housing shortage, particularly in major cities, by aiming to deliver 1.5 million new homes. Initiatives include consultations on the National Planning Policy Framework, the New Homes Accelerator, and the New Towns Taskforce.
Affordable housing boost: An additional £500 million will be allocated to the Affordable Homes Programme, aiming to build 5,000 more affordable homes. Future grants, expected to be announced in Phase 2 of the Spending Review, will support social housing providers in creating more affordable housing options.
Long-term social housing rent plan: A new rent settlement proposes an annual increase of CPI+1% for five years, providing financial stability for social housing providers and supporting continued investment in affordable housing.
Changes to the Right to Buy Scheme: Discounts under the Right to Buy scheme will be reduced, allowing councils to retain all sales proceeds. This adjustment aims to protect existing council housing stock and promote social housing availability.
Infrastructure Investment
The budget includes over £100 billion in capital investment over the next five years, focusing on transport, housing, and R&D. Enhanced transport infrastructure can increase property values and attract new businesses, benefiting property management companies. A 10-year infrastructure strategy will be released alongside Phase 2 of the Spending Review.
Support for small businesses
Growth hubs and management programs: Initiatives such as Growth Hubs and Help to Grow: Management offer support for small property management and estate agency businesses, assisting them with expansion and operational improvements.
Push for digitisation: Programs like the SME Digital Adoption Taskforce and Made Smarter Adoption are designed to encourage digital adoption, helping property management companies streamline operations and improve customer service.
Industry reactions to the Budget
Key industry bodies have offered mixed reactions to the Budget, with Propertymark, the professional body for the UK property sector, finding some aspects encouraging, while also identifying some significant missed opportunities. You can read Propertymark’s response here.
