How the Autumn budget impacts the property market: Positive opportunities for both sellers and landlords
The recent Autumn budget has brought several adjustments to the property market, creating both new challenges and exciting opportunities for sellers and landlords. With some strategic planning, it’s possible to maximise property value and attract genuine interest. Here’s an overview of the market landscape and how sellers and landlords can capitalise on these changes—especially in the South East, where demand continues to be strong.
Key changes in the UK market
Capital Gains Tax (CGT) adjustments
The budget has lowered CGT allowances, impacting sellers of additional properties. With allowances set to decrease from £12,300 in 2023 to just £6,000 in 2024, and then down to £3,000 by 2025, timing will be essential for sellers looking to minimise tax exposure. This adjustment encourages some to sell sooner rather than later to optimise returns while avoiding higher tax liabilities.
Interest rate effects
With interest rates now averaging around 5.25% (a significant increase from the 0.1% rate in 2021), buyer affordability has cooled, and mortgage rates have doubled since early 2022, impacting buyer budgets and lending criteria. However, serious buyers remain active in the market, particularly in the £500,000–£800,000 price range, where competitive bidding is still evident. Notably, 47% of the active buyers registered with Hat and Home are currently looking for properties within this range. For landlords, locking in fixed-rate mortgages could help stabilise finances and support long-term planning in this shifting environment.
Increased focus on energy efficiency
A focus on energy efficiency has seen energy-efficient properties rise in value by an average of 8% more than standard homes, according to Rightmove. Properties with higher EPC ratings (such as A or B) have been selling 20% faster than those with lower ratings in 2024, as buyers increasingly prioritise sustainable living. Landlords, too, have an opportunity: energy-efficient rentals are not only appealing but are expected to see reduced void periods and even higher tenant retention.
Enhanced rental regulations
The budget has reinforced tenant protections, which aim to encourage long-term, stable tenancies. This will likely increase demand for high-quality rental properties that meet evolving standards. Currently, properties with strong tenant protections and energy-efficient upgrades are in high demand, as they offer both security and lower energy costs—appealing factors for today’s renters.
Opportunities in the South East
The South East remains one of the UK’s most resilient regions, with demand from families, commuters, and environmentally conscious buyers maintaining a steady market.
High demand for quality properties
In the South East, average property prices remain robust, with a 3% annual increase in 2024, especially in areas with good transport links and excellent schools. Sellers in this region can expect sustained interest, particularly for well-maintained homes. The combination of location and quality makes properties here especially appealing.
Energy efficiency as a key selling point
Energy-efficient properties in the South East are increasingly sought after, with homes in London and surrounding areas commanding 10% higher offers for energy-efficient upgrades, according to Zoopla. Sellers with high EPC-rated homes can expect strong demand, while landlords investing in energy improvements are seeing up to 5% increases in rental income due to rising tenant demand.
Positive rental market conditions
The South East’s rental market is thriving, with demand outpacing supply by 30% in high-demand locations. Rent prices in the region have grown by an average of 6% year-on-year. Well-maintained properties near transport hubs and top schools command premium rents, giving landlords an opportunity to attract quality tenants and benefit from stable, long-term rental income. At Hat and Home, 94% of our marketed stock is let in just 8 days and our average tenancy length is 18 months.
Moving forward
For sellers and landlords, these budget-driven changes open up new opportunities to enhance property appeal and respond to demand.
Consulting professionals
Working with an experienced estate agent can help you navigate these shifts, ensuring that your property is competitively priced and marketed effectively to attract serious buyers and tenants.
Staying flexible
Flexibility with pricing, especially for properties with energy-efficient features, can lead to faster sales and competitive offers. Minor upgrades to boost EPC ratings can also make a significant difference in tenant and buyer interest.
Leveraging location
In high-demand areas like the South East, appealing to buyer and tenant needs—especially for energy efficiency and quality schools—can yield positive results and ensure quicker transactions.
Embrace the opportunity
In today’s evolving market, sellers and landlords are well-positioned to capitalise on their property’s potential. If you’re considering your next steps, reach out to our team for advice tailored to the current market dynamics, helping you make the most of ongoing demand for quality homes.