![]() ![]() If you’re planning to sell property in 2024, the tax-free allowance for Capital Gains is halving again in April, dropping from £6,000 to £3,000 – although this isn’t a huge burden. However, the current freeze on Income Tax bands and the Personal Allowance means that those landlords who have managed to raise rents by more than their costs have increased, could be paying tax on a higher proportion of their income. Some landlords could benefit from Class 2 National Insurance being scrapped and the rate of Class 4 contributions falling from 9% to 8% in April. ![]() In terms of tax, there’s good and bad news. Make sure you secure an accurate valuation from a qualified agent as online tools will be too generic for investment valuation purposes. If you haven’t had your properties valued recently, it’s well worth doing so now, as you may be able to remortgage and use some of that equity to make some new investments. That will help existing landlords who are remortgaging and should encourage some much-needed new buy-to-let investment.įor existing landlords, especially those with multiple properties, the increase in average capital values since the start of the pandemic may have significantly boosted equity. And as lenders’ confidence in the economy improves and they continue to compete for business, hopefully 5-year fixed deals may become much more attractive. If those predictions are right, it’s possible that average mortgage rates could drop by around 1% next year, to 4-5%. In turn, CE expects the base rate to drop to 4.75% next year – significantly lower than the 5.1-5.2% that others are forecasting – before reaching 3% in 2025. Capital Economics (CE) predicts that inflation will drop to 2.4% by the end of 2024 and as low as 1.3% by the end of 2025. This can be greatly influenced by the rate of inflation, as we’ve seen over the past two years.Ĭurrently, it looks as though inflation is falling steadily and the base rate has peaked, having hit 5.25% in August and remained there since. So, as the Conservatives push ahead with their plans for reform of the private rented sector, landlords need to be aware of what could be on the horizon if Labour comes to power in 2024.Ī big concern for landlords at the moment is the cost of mortgages, which tend to move up and down in line with the Bank of England base rate. In addition to the Renters (Reform) Bill making its way through Parliament, we have a budget to look forward to in March and there is set to be a General Election at some point during the year. Partners and Suppliers Allison Thompson What landlords should watch out for in 2024Ģ024 will be a year to watch for landlords, especially those self-managing, as there are likely to be many changes and new announcements which will affect the way landlords operate. ![]()
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