Speculation is swirling ahead of the Chancellor’s Autumn Budget on 26 November. Across the property sector, there is a familiar sense of anticipation mixed with some unease.
For seasoned property investors, brokers and lenders, the rumour mill is nothing new. in the lead-up to major fiscal events, potential policies are deliberately floated to test the water – some disappear quietly, while others become the backbone of the final announcement.
What does seem certain this time around is that tax rises are on the way. The government has signalled that public finances are in a more challenging position than expected, and despite last year’s commitment that tax increases would be a “once-in-a-parliament” exercise, further fiscal tightening appears inevitable.
Against that backdrop, what could the property market expect – and what will it mean for brokers and their clients?
Key policy areas to watch
Much of the current speculation centres on property-specific taxes.
While the idea of replacing Stamp Duty Land Tax entirely has lost momentum since the summer, adjustments to existing SDLT bands and thresholds remain possible. There has also been discussion around higher-value homes facing an annualised charge rather than a single upfront payment – a change that would alter the cost profile for buyers and potentially influence transaction timing.
Local property tax changes could also feature. The council tax system, based on 1991 valuations, is increasingly seen as outdated. A shift towards a structure tied to current market values would represent a significant structural reform, although one that would likely take time to roll out.
On a related theme, over the last weekend plans were touted that would see Reeves introduce a property levy on homes in council tax bands F, G and H. This would impact 2.4 million of England’s most valuable homes, but the plans would include a deferral scheme that would put the levy off until a property is sold or the owner passes away.
Landlords may face additional scrutiny too. One widely discussed possibility is the introduction of National Insurance contributions on rental profits, which are currently exempt.
Adjustments to capital gains tax or to reliefs related to residential investment properties have also been floated. For landlords already contending with rising costs, such changes could require careful planning.
However, not all prospective announcements are expected to be restrictive. With affordability challenges persisting, the Chancellor may look to support first-time buyers or extend the mortgage guarantee scheme. There may also be targeted incentives for energy-efficient homes, particularly in light of the government’s broader sustainability ambitions.
These types of measures often stimulate activity among specific buyer groups. Even in uncertain conditions, policy designed to encourage affordability or improve energy standards can help restore confidence and bring hesitant buyers back into the market if grants or incentives are on offer.
The potential market reaction
We have already seen the market reacting to the suggested changes that could be included in the Budget, with demand falling and prices softening in recent months. But this is a relatively normal phenomenon, and past Budgets show us that it’s not the content of the Budget that slows down activity but the uncertainty the market feels in the run up to it.
As such, once the announcement is made, pent-up demand can be released, especially if changes to SDLT or other property taxes come with transition windows. A burst of activity often follows, driven by clients who want to transact quickly before new rules take effect, or who feel greater clarity and confidence once uncertainty has lifted.
For brokers, this can mean a sudden increase in cases that require quick decisions and even quicker execution.
How RAW can help brokers stay ahead
At RAW Capital Partners, we know that periods of change mean that brokers require greater speed, certainty and flexibility so they can respond in turn.
RAW’s lending model is designed with these qualities at its core. Our in-house credit team meets twice a day, enabling us to provide a decision in principle within one business day of the initial enquiry. At times when buyers need to move fast – whether due to tax changes or shifts in sentiment – this level of responsiveness can make or break a deal.
We have also built our process to be extremely streamlined, as explained by our step-by-step guide. It means that we can keep the administrative burden for brokers to a minimum and allows transactions to progress without delay.
Put all these traits together, and our approach to lending is ideally set up to help brokers as they and their clients navigate the coming weeks and the aftermath of the Budget. Whatever measures are announced, our expert team will continue to support brokers with the speed, clarity and certainty they need.
Get in touch today: https://rawcapitalpartners.com/