Autumn Budget – Thoughts from the Industry
Following the Autumn Budget, here are some thoughts from the property industry.
Chris Norris, Policy Director for the National Residential Landlords Association:
“Whilst the Budget spoke about protecting vulnerable people, it failed to confirm what we now know – that housing benefit rates will be frozen as of next year.
“It makes no sense whatsoever to provide support for housing costs that bear no resemblance to rents as they actually are.
“Coupled with tax hikes on the supply of homes to rent, announcements today will make it hardest of all for those claiming benefits to access and sustain tenancies in the rented sector.”
Brian Berry, Chief Executive of the Federation of Master Buiders:
“The Budget was the first opportunity for the new Government to set out its long-term financial plans for the country. In challenging economic conditions, the Chancellor of the Exchequer delivered a mixed Budget with promising plans for the long-term future of the construction industry, however it is likely to present substantial challenges to firms managing their business finances. At a time when SME builders are needing a boost, they may, like many in the country, have to take a hit before they see things get better.”
“The Chancellor’s decision to significantly increase employers’ National Insurance contributions will create major headaches for firms looking to take on staff at a time when the building industry in desperate need of new workers. However, it is good that the Chancellor has shielded small companies by increasing Employment Allowance, as is the rise in the Apprenticeship wage which will help increase the appeal of a career in construction for young people. Capital Gains increases may also hit builders looking to sell off their companies when they look to retire.”
“The FMB has been calling for more details of the Government’s plans to improve the energy efficiency of the UK’s homes, a key pledge in Labour’s election manifesto. The announcement of £3.2bn to fund the Warm Homes Plan will be crucial to getting more SME building companies to enter the retrofit market. The announcement of additional support for SME house builders to access low-cost loans is also welcome, and alongside the announcements on housebuilding made in recent months, offers hope for the future. SMEs have a crucial role to play in plans to get Britain building again, and it is vital that the Government does not lose sight of the challenges the sector continues to face.”
Nathan Emerson, CEO at Propertymark:
“Whilst it is understandable that the UK Government needs to find more revenue, the increase in the Stamp Duty surcharge for second homes will not help increase demand for rented property at a time where homes are desperately needed to compete with ever-growing demand from tenants.
“Considering this Government is committed to Net Zero, it is going to be hard for landlords and homeowners to meet the UK Government’s MEES targets without help via loans and grants.
“Furthermore, the hike in national insurance contributions could hit many property agents who are trying to ensure that they are maintaining a steady cash flow while paying their employees a decent wage.
“However, it is encouraging to see that the UK Government is investing money to end dangerous cladding following the Grenfell Inquiry, something Propertymark welcomes. We look forward to continuing working with the UK Government as they move these plans forward.”
Tim Foreman Managing Director Land & New Homes LRG:
“Ahead of the budget, there was a lot of talk around increasing the number of houses being built in the country, which remained absent. This will affect the long-promised improvements to planning. My concern is that there are so many hurdles that developers have to overcome to achieve a scheme. With so many additional costs, the prices they have to achieve to make the sites viable will hinder purchasers’ ability to buy. There was a notable lack of a scheme akin to Help to Buy, which would stimulate the bottom end of the market and will help first-time buyers get on the ladder. This would motivate the developers to press ahead with their developments and provide the much-needed and desired new home targets.
Concerning the taxes, keeping stamp duty relief was welcomed. Properties are expensive, mortgage rates have increased over the last few years, and all of the services involved in buying a property are also expensive. Now that first-time buyers will continue to save money on stamp duty, it will keep the market moving, although the stamp duty increase on second homes from 3 to 5 percent could impact the market.”
Kevin Shaw National Sales Managing Director at LRG:
“Despite an expected increase in capital gains tax (CGT) on the sale of second homes, the chancellor announced there would be no increase in today’s budget. This will be well received within the industry, as there has been a lot of pressure on landlords. The changes in stamp duty (STD) for second homes from 3 to 5 percent may impact some purchases, although the majority of investors take a long-term view. It will, however, support people buying first homes, especially first-time buyers. Overall, they stuck to their manifesto. The bigger picture is that inflation is falling, and so too are interest rates; we have stable house prices, and incomes in the main have increased, which is all having a positive impact on affordability.”
Daniel Gale First for Auctions, part of LRG:
“Today’s budget announced several key changes that will reshape the property landscape, particularly in auction markets. With the government having made changes to stamp duty for second homes, buyers may be more inclined to buy at auction where the price can be considered better value. Additionally, as lending rates and tax policies become clearer following the budget, we expect to see renewed interest from both investors and residential buyers.
“For the auction market, clarity around fiscal policy is crucial – it brings confidence and stability, enabling faster transactions and more predictable outcomes for buyers and sellers alike. This momentum should support a robust auction market in the coming months, attracting a diverse range of buyers eager to capitalise on shifting economic conditions.”
Sarah Thompson, Managing Director, Mortgage Scout:
“Today’s budget brings a mix of considerations for working people aiming to buy a home. While it avoids direct tax hikes, there are subtle changes, like increased employer National Insurance contributions, that could impact take-home pay in the long term and, ultimately, mortgage affordability. Additionally, while it’s less than ideal that stamp duty thresholds will revert to previous levels in March 2025, buyers still have another five months to take advantage of the current stamp duty relief. This makes buying now an even more strategic choice for those ready to enter the market.
“Separately, there’s encouraging news in the form of falling mortgage rates and easing inflation, which could improve affordability in the months ahead. Although these positive trends aren’t directly tied to the budget, they set a promising backdrop for potential buyers. Expectations are high that the Bank of England may also lower the base rate soon, potentially easing mortgage costs further.
“One notable absence in the budget is a government-backed buying scheme, like Help to Buy, which could have been a valuable tool for supporting first-time buyers in today’s challenging market. While lenders continue to offer 5% deposit options through their own schemes, a national programme would provide added security for those starting their homeownership journey.
“While the budget may not address every concern for potential buyers, the current environment presents good opportunities for those considering a purchase in the next year. Now really is a great time to explore your options and lock in rates, ensuring stability and taking advantage of any additional rate reductions before completion whilst also ensuring you take the opportunity of reduced stamp duty before it increases back to previous levels in March 2025.”
Steven Bond MNAEA MARLA, Managing Director – Residential Lettings, Buy to Let Investments and Surveying – Beresfords Group:
“From an existing landlords’ perspective there were no real changes within the budget that will have a detrimental effect financially on the current properties which they may own. Speculation prior to Rachel Reeves budget speech in parliament indicated that she may increase CGT rates if and when second homes were sold. However, in reality there has been no change to the current thresholds concerning second homes so for the large majority of landlords this will be seen as a better outcome than what was first anticipated.
“There has been a change to Stamp Duty for those buying an investment property. Anyone currently purchasing a second home for investment purposes will now pay an extra 2% on the lowest threshold being £0 to £250,000. So, an increase from 3% to 5% would, in monetary terms, represent an additional £5,000 for a purchaser buying at £250,000 or above – slightly less for any such properties under £250,000. Further concerns surround the timescale of when this increase becomes effective, which is almost immediately, so it will clearly hit those currently purchasing for this purpose or anyone looking to do so in the future. In these instances, it’s important that any additional charges in this regard should be factored into related financial forecasts.
“Granted this additional cost will not be welcomed by those affected, but it should be remembered that as and when such properties are sold at some point in the future, the current regulations allow landlords to offset such costs along with other specific expenditure, against any profits made before CGT is finally applied. So, in essence, there is a clear opportunity to reclaim some of these charges back from HMRC. Furthermore, bricks & mortar has and continues to offer lucrative financial returns to those prepared to invest over the medium to longer term, as average property prices and levels of rent received continue to increase. Therefore, the recent change to the entry level threshold of Stamp Duty for those buying is unlikely to be a significant deterrent for the large majority of investors who remain attracted by the healthy rental returns and capital growth potential on offer.”
Allison Thompson, National Lettings Managing Director, Leaders Romans Group:
“The Budget announcement today introduced some critical changes, notably an increase in Stamp Duty from 3% to 5% for second homes, which will particularly impact landlords. While Capital Gains Tax remains unchanged for residential property, the rise in Stamp Duty might prompt some landlords to reconsider buying additional properties.
“Increasingly, we see that the housing market requires more than short-term adjustments; it needs a stable, long-term vision that encourages investment and ensures tenants have affordable and secure housing options. Without this, we risk creating a bottleneck in housing availability, where tenant demand far outstrips the supply of rental properties, driving up costs and reducing choice.
“In addition, sustainability requirements, such as the EPC grade targets, add another layer of pressure. If landlords are expected to upgrade older properties to meet EPC standards by 2030, then support measures need to be introduced now to make these upgrades feasible. Without assistance, many landlords will face prohibitive costs, which could ultimately reduce the number of available rental properties.
“Overall, the government’s approach must focus on stability and growth within the PRS. The housing crisis cannot be solved by simply managing exits from the market; we need active measures that attract new investment, protect existing rental supply, and ensure both landlords and tenants can thrive in a fair, sustainable framework.”
Allison Whittington, Head of Housing and Health at Zurich Municipal:
“Increasing the supply of housing for those that need it most is welcome, in addition it is important to improve the security of housing in our society.
“We also have to ensure that the sort of homes we build will be ones we are proud of in generations to come. Housing Associations already make a significant contribution to the delivery of new housing supply and have seen their finances stretched over recent years. Support for this vital sector is needed to enable them to continue to play their part in creating homes for all.”
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