Budget ends speculation that has stalled the market for months, says Reapit
A series of tax and spending measures in today's Budget are expected to bring much needed clarity to the property sector after months of uncertainty, says Dr Neil Cobbold, Commercial Director at Reapit, a leading technology provider to the property sector.
As agents adapt to the changes, their ongoing success will depend on combining proactive advice to buyers, sellers, landlords and tenants with technology that delivers deep insight into those customers' needs and opportunities. Agencies that act quickly to leverage digital efficiencies and their hard-earned professional expertise will be best placed to keep pipelines filled, continue growing and strengthen client trust as the market adjusts to new rules.
Property taxes
Cobbold says:
"Today's Budget will affect sales and lettings differently across the UK, but it will finally bring clarity after months of speculation that have hampered transactions. The 'mansion tax' on properties worth £2m or more will create a cliff-edge on valuations and potentially pause some high-end sales, particularly in London suburbs and the South East.
"The 2% increase in property income tax will dent landlord income and risk rental property attrition at a time when we need more supply. However, it also creates an opportunity for expert agents to advise on alternative strategies, such as higher-yield tenancy types including student rentals and HMOs, refinancing options to reduce mortgage payments, or even transitioning properties to sales.
Further budget impact
"Beyond property taxes, lower energy prices will improve affordability for tenants and potential homeowners – a welcome boost in a challenging market. The funding allocated in this Budget to improving the planning system is another welcome step towards accelerating the delivery of the 1.5 million homes the government has committed to.
"Charging National Insurance on 'salary sacrifice' pension contributions above £2,000 from April 2029 could prompt some high earners to look for alternative investments. The best agents will be able to show that property remains an attractive option.
"Meanwhile, with large increases in the national minimum wage, agencies looking to hire for entry-level jobs may be forced to reconsider and instead focus on AI and technology designed to make existing teams more efficient.
Agent advice and insight are key to growth
"As agents absorb these tax and spending changes and provide professional advice to vendors, buyers, landlords and tenants, their business focus will be on gaining every competitive advantage. Those businesses with the technology to deliver clear insight into their customers' business flows across sales and lettings will be best placed to identify which vendors, buyers, landlords and tenants are ready to move or sell.
"Agents who combine proactive advice with digital efficiency won't just rebuild pipelines – they will accelerate growth and strengthen trust with their clients as the market adapts to new rules."
