After all the speculation, this Budget offered little for the housing market.
No stamp duty reform, no meaningful support for first-time buyers and a new tax on higher-value properties that raises as many questions as it answers.
Stamp duty remains an outdated tax that restricts mobility and puts the brakes on economic activity.
The wider property market represents a significant portion of the economy – when transactions flow, solicitors, surveyors, mortgage brokers and removal companies all benefit. We remain strong believers that there’s a need for fundamental reform to allow the market to function more effectively.
WHAT HAPPENS NEXT
We’ve already seen evidence of what happens when taxes on property increase.
In Cornwall, Devon, Wales and other locations where council tax on second homes has doubled, supply has risen as owners look to sell, demand has fallen, and prices are under pressure.
Similar dynamics could play out at the higher end of the market when the new surcharge takes effect in 2028.
On a more positive note, the Bank of England has cut interest rates five times since the start of this Parliament. According to the Budget, this translates to savings of around £1,200 a year on a typical new mortgage.
With a Reuters poll showing nearly 80% of economists expect a further cut in December, improving affordability remains the key to unlocking activity for buyers and sellers.
