We’re now 30 days into the new Labour government, and there's been a whirlwind of activity impacting the property market. Here are some key updates you need to know.

Stamp Duty Relief Blow for First-Time Buyers:

It has become increasingly difficult to purchase a first home in England. And it’s about to get a little tougher.

The government are moving the current first-time buyer threshold of £425,000 to £300,000 from April 2025. It means only 37% of homes for sale will qualify for stamp duty relief - a significant drop from the current 58%.

• South West and East of England: Hardest hit regions.

• North East: Faces the smallest impact.

• London: Particularly dire, with fewer than 10% of homes projected to be exempt from stamp duty for first-time buyers in 2025.

The difficulty in owning a first home could lead to more people renting for longer, placing additional strain on the rental sector.

Luton Property Market Update:

As shown above, the average property price in the Luton postcode area is now £333,000, with the median price at £315,000. Important to note that over the past year, the average price has declined by £12,900 (-4%).

Luton remains one of the most affordable areas surrounding London, ranking 51st out of 105 postcode areas in England and Wales.

Potential Capital Gains Tax Hike:

Speculation is rife that Labour will increase Capital Gains Taxes to fill the hole in the UK’s public finances.

The rates of Income Tax and CGT could be equalised, potentially raising the top rate of Capital Gains Tax from 28% to 45%.

New Chancellor Rachel Reeves, speaking in parliament, reaffirmed her commitment not to raise VAT, National Insurance, or Income Tax. This leaves CGT as one of the few areas the party might explore.

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