Budget 2024: Key Takeaways for Property Finance

As the UK market absorbs the 2024 Budget, brokers and investors in the property finance sector are keen to understand its impact on their business. At Alternative Bridging Corporation (ABC), we’ve analysed the key changes and offer insights into how these might influence property finance in the coming months and years. Below, we explore the key takeaways from Budget 2024 and how it could affect bridging loans, development finance, and term loans.

Short-Term Impacts: Navigating Immediate Budget Changes

The immediate implementation of changes in Capital Gains Tax (CGT) is likely to drive activity among property investors. Many may rush to complete deals in response to these new tax policies, creating a surge in demand for bridging loans and development finance to ensure rapid completion. For brokers, understanding these changes is crucial for advising clients. Discover how our flexible finance options can support your clients’ needs, by viewing our products here.

Key short-term impacts include:

• Increased urgency for property transactions due to CGT changes.
• Higher demand for bridging loans to secure short-term financing.

Medium-Term Impacts: Adjusting Property Development Strategies

As we look beyond the immediate effects, high construction costs will likely lead developers to reassess their property development strategies. This Budget’s focus on sustainable development and infrastructure investments may lead to increased demand for development finance, particularly in regional areas outside London, which are being targeted for growth.

Key medium-term considerations:

• Construction cost increases could slow some projects, creating a need for flexible funding solutions like bridging finance.
• Infrastructure investments may boost property development in regions like the Midlands and the North of England.

Long-Term Impacts: Regional Opportunities and Investment Shifts

In the long run, the property market will benefit from new regional development policies introduced in the 2024 Budget. These policies aim to drive growth outside London, offering new opportunities for investors. Brokers should be prepared for an uptick in demand for commercial loans and development finance in these emerging markets.

Key long-term impacts:

• Shifts in property investments to regional areas with government backing.
• Increased demand for commercial loans to finance long-term developments in these growth regions.

Conclusion: How Alternative Bridging Corporation Supports Brokers Post-Budget

At Alternative Bridging Corporation, we’re here to help brokers navigate the evolving property finance landscape. Whether your clients need bridging loans, development finance, or term loans, our tailored solutions can support their needs through the short-term volatility and long-term opportunities created by the Budget.

For more details on how our products can benefit your clients, explore our full range of services.

By focusing on bespoke solutions, we help brokers and their clients achieve success, no matter the market conditions