Looking Back at How Spring Statement 2024 Hit UK Property

It has been more than a year since Spring Statement 2024 was announced, and its effects on the UK property sector are now coming into sharper focus. From tax cuts to policy overhauls, the changes introduced back then have played out in ways that left some cheering and others grumbling.

Let us look at how those decisions have shaped the property sector and what they have meant for everyone, from investors and tenants to developers and homeowners. This will help us gauge if we will get something similar in Spring Statement 2025.

Capital Gains Tax Cut Was a Boost for Sellers

One of the most talked-about changes was the cut in the higher Capital Gains Tax (CGT) rate on residential properties from 28% to 24%. For property investors and second-home owners, that was welcome. In the following months, property sales surged sharply, particularly among higher-rate taxpayers who had been holding off on selling.

Although that didn’t trigger a flood of new listings overnight, the cut encouraged more market activity. Sellers who cashed in on their properties in 2024 and early 2025 saved thousands. And the move helped inject some much-needed liquidity into the market. For those who timed it right, it was a bonanza.

The End of Furnished Holiday Lets

The announcement the Furnished Holiday Lets (FHL) tax regime would be eradicated from April 2025 was a bitter pill for many landlords to swallow. The complex but advantageous tax perks have made short-term holiday lets a lucrative option, mainly in tourist hotspots. But now many landlords are rethinking their strategies.

In areas like Cornwall, the Lake District and coastal towns, the announcement provoked a small but noticeable hike in long-term rental properties coming onto the market. That was good news for locals battling to find affordable housing, though it left some holiday let operators squeezed.

SDLT Winners & Losers

The abolition of Multiple Dwellings Relief (MDR) in June 2024 caught property investors and developers off guard. Those who had exchanged contracts before the March 2024 deadline breathed a sigh of relief. But the math suddenly became much less appealing for anyone looking to bulk-buy properties after June.

Conversely, the exemption of social housing providers from Stamp Duty Land Tax (SDLT) on publicly subsidised purchases was a win. This change freed up funds for affordable housing projects, helping to tackle the UK’s chronic housing shortage. Public bodies also benefited from the removal of the 15% anti-avoidance SDLT rate, making it easier for them to invest in property without facing punishing tax bills.

VAT Threshold Boost Was a Lifeline

The hike in the VAT registration threshold from £85,000 to £90,000 in April 2024 was welcome for small property businesses and self-employed professionals. For those hovering around the threshold, it meant fewer administrative headaches.

It also allowed many smaller operators to reinvest in their properties or expand their portfolios without the immediate pressure of VAT registration. It was not a headline-grabbing move but still for those it helped, it made a real difference.

National Insurance Cuts Meant More Spare Cash

The two percentage point cut to National Insurance contributions for both employed and self-employed workers put more money in people’s pockets. For property professionals, that meant extra cash to spend or save, whether that was upgrading a rental property, investing in a new project or simply weathering the cost-of-living crisis.

To be sure, the impact was not directly tied to the property market. Yet it did contribute to a minor boost in consumer confidence, which in turn supported housing demand. It was also a reminder that even policies with zero connection to property can send shockwaves through the market, in ways that no one saw coming.

Reserved Investment Fund Unlocked New Frontier

The introduction of the Reserved Investment Fund (RIF) in 2024 opened up new opportunities for professional and institutional investors, as well as property funds. The legislation, which was finalised in the Spring Finance Bill, provided clarity on how such funds would be taxed and how much income or gains investors could expect.

Over the last year, the RIF has started to gain traction as a viable option for diversifying property investments. Though it is still in the early days, the fund has shown promise as a way to pool resources and access larger-scale property projects.

Hits & Misses

The government’s commitment to building 30,000 new homes with a focus on Cambridge, London and Leeds was a bold promise. Progress has been made in that path, yet the target has proven difficult to meet in full. Delays in planning approvals and soaring construction costs have slowed some projects, barring in Leeds, though, where new developments have started.

The £2 million investment to boost global trade opportunities in Northern Ireland also paid off, attracting new interest in the region’s property market. Meanwhile the consultation on extending full expensing to leased assets has yet to yield concrete changes despite the fact that it has sparked important conversations about how to support businesses investing in infrastructure.

Conclusion: Likely Changes in Spring Statement 2025

Looking back, the effects of Spring Statement 2024 were mixed for the UK property sector. The CGT cut and SDLT exemptions for social housing were clear positives whereas the end of FHL’s tax perks and the abolition of MDR created troubles for some.

The budget provided stability and opportunity for developers and businesses thanks to measures designed to prompt more investment and boost construction. But as always, the devil was in the details and not every policy landed as intended.

Overall, the changes introduced in 2024 meant some thrived while others are still finding their footing. As we wait for Spring Statement 2025 this month, everyone will be staying alert to learn how that will shape the sector -- for better or worse.