The Budget – Residential Property
Thoughts from Lisa Wilson, Partner at law firm Spencer West LLP:
“Chancellor John Healey, as many Chancellors before him, has the unenviable task of achieving balance in UK taxation and spending. Whilst there have been a few property rumours in the press, they are notably quieter than in years gone by.
Over the Summer months there was chatter around an ‘Autumn Bounce’ for the UK Property Market, but this has not materialised in practice.
The widely-hoped ‘Autumn Bounce’ for the UK property market has failed to materialise. Buyers remain cautious, mortgage products are rapidly changing, and transactions are being delayed to the point where this can no longer be viewed as a seasonal slowdown.
Prior to the 2025 Budget I certainly felt that buyers were holding in making any big property decisions until the Budget was announced later than usual at the end of November 2025. The market therefore entered 2026 carrying the effects of those deferred decisions.
Winter led into Spring, where we would normally see more activity in terms of sales and purchases completing, but the eruption of the Iran War, had an instant upwards impact on UK mortgage rates, leading to more Buyer uncertainty.
The introduction of the Renters Rights Act, and abolition of ‘No Fault’ evictions from 1 May 2026 has impacted upon market activity. Leading up to the 1 May deadline, Agents and Landlords worked hard to serve Section 21 Notices whilst they still could.
The evictions meant lots of investment properties were up for sale, but with increasing mortgage rates and Buyer uncertainty, buyer appetite was perhaps not what Landlords were expecting. Many of those properties are still sat on the market without tenants or buyers. Could new Investor Buyers be the answer?
I would welcome reform to Stamp Duty in the 2026 Budget in the form of reduced rates for Additional Properties to help restore liquidity. This would bring new investors to the market who are entering with 2026 laws and taxation already in place, rather than having to adjust existing plans retrospectively.
In any market, buying property should be viewed as a long-term investment to weather inevitable political storms. By long term, I suggest 10-20 years – gone are the days of making a ‘quick buck’ in property. Let’s wait and see if The Chancellor prioritises property, as after all, a strong property market means a strong economy.
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