Yesterday, the UK Parliament released the 2024 Autumn Budget. This budget is important for first-time home buyers. It includes updates that may change how easy or hard it is to buy your first home. If you’re planning to apply for a mortgage, make an offer, or exchange contracts soon, here’s how the budget changes could impact you.
What First-Time Buyers Need to Know
The Autumn Budget 2024, presented by the Office for Budget Responsibility (OBR), included changes that aim to help people buying a home for the first time.
Some of these changes may lower your costs, while others could mean more expenses. Knowing what’s new can help you make the best decisions during your buying process.
Rising Fuel Duty and Its Impact on Home Buyers
This year’s budget includes a small rise in fuel duty, which might increase everyday costs like commuting and home energy bills. While fuel duty won’t directly affect your mortgage, it could make monthly expenses higher.
If you’re buying a home soon, it’s good to think about these extra costs when planning your budget.
Tax Changes and National Insurance Contributions
There are also new tax changes to consider. Small increases in national insurance contributions may mean a bit less in take-home pay.
Also, income tax will change in April 2025, which could impact your ability to save for a deposit or keep up with mortgage payments.
If you’re close to applying for a mortgage, try to look at your budget under these new tax rates.
Business Rates and Building Insurance
The budget has also raised business rates, which applies to shops and offices rather than homes. However, these rates can impact the area’s property values, so if businesses in your area are affected, house prices might shift over time. Building insurance, while not directly mentioned in the budget, is another essential cost for first-time buyers.
It’s wise to research building insurance policies early to keep this cost manageable.
Public Services, Mortgage Help, and Licensed Conveyancers
Extra funds are going to public services, which can make neighborhoods with strong services and amenities more attractive for buyers.
Improved infrastructure and public services can increase property values in the long run.
The government might also provide more support options for mortgage applications, giving first-time buyers extra resources to find the right mortgage. And as always, a licensed conveyancer can make the buying process easier by handling legal paperwork, guiding you through exchange dates, and helping you with completion dates.
Moving Forward as a First-Time Buyer
Here are a few simple steps to keep in mind as you plan your home-buying journey:
- Review Your Budget: Make sure to include possible tax and insurance costs in your monthly budget.
- Stay Updated on Mortgage Offers: Check for new mortgage options, as lenders may offer better deals based on the budget changes.
- Consult with a Conveyancer: They can help with contracts, completion dates, and any legal questions.
- Research Local Markets: Knowing local trends in property prices and business rates can help you decide where to buy.