After the delay of the Budget to 26 November and all the leaks, there was an expectation of significant change.
However, it appears to be quite the opposite; any substantial measures are not due to take effect until 2028 and 2029, with very little to stimulate the economy in the near term.
The property industry has been calling out for reinvention – reform or abolishment of Stamp Duty, first-time buyer incentives and a real driver for homeownership.
This Budget has clearly not delivered on those fronts. stamp duty remains an antiquated tax that stifles movement and slows economic momentum.
REFORM OVERDUE
When transactions pick up, everyone – from removal firms, mortgage brokers to solicitors – feels the benefit. That’s why we continue to argue that meaningful, structural reform is long overdue.
While potential changes to the ISA product for first-time buyers have been announced, this won’t be confirmed until the consultation is complete next year, and we’ll need to see the details before we understand what tangible benefit it will deliver.
“This is not due to come into effect until 2028.”
The High Value Council Tax Surcharge – or ‘mansion tax’ as it’s been called – is not due to come into effect until 2028.
The charge rises in four bands from £2,500 to £7,500 depending on the value of the property, but questions remain about how properties will be assessed.
This is estimated to raise £0.4 billion in 2029-30, a figure that appears modest against the billions that need to be recovered.
We will be running a survey asking buyers and sellers their views on the proposed mansion tax and whether it impacts their current decision-making.
“There’s no reason to wait any longer.”
There is, however, a brighter spot. The Bank of England has cut interest rates five times since the start of this Parliament, which translates to savings of around £1,200 a year on a typical new mortgage.
With many forecasts pointing to further reductions in the first half of 2026, this is encouraging news for the housing market and cost of living more broadly.
Ultimately, for anyone who has been holding off to see what this Budget would deliver, there’s no reason to wait any longer.
We can now return to business as usual and focus on getting transactions moving.
