The Intermediary – December 2025 - Flipbook - Page 31
A YEAR IN REVIEW
Feature
and delayed major moves until a bit of clarity
She continues: “Additionally, the extra
emerged post-Budget.”
landlord tax announced will affect landlords
The new Act also intensified existing divides
of all sizes, and will have a knock-on effect on
within the landlord community. Davies notes:
consumers’ ability to spend, as cost burdens are
“[It] didn’t create new trends, but it did deepen
invariably passed on by rent rises, and these can
some of the multi-year shifts already underway.”
only be pushed so far before we start seeing the
He adds: “Smaller, single-unit or personally
cracks in consumer affordability.”
owned landlords felt the ongoing squeeze on
This sentiment was echoed widely, particularly
landlords the most, while incorporated landlords
among brokers and investors still adjusting to
and portfolio operators remained better
the cost implications of the Renters’ Rights Act
positioned to absorb it.”
earlier in the month.
Budget impact
noting: “Incremental tax rises on investment
Davies captures this compounding effect,
The November Autumn Budget brought with
income and no meaningful action on planning
it a series of headline changes for the property
or regulatory bottlenecks meant the environment
market, though not the ones many had hoped
became more complex without becoming any
for. In the midst of heightened chaos in the
more supportive.”
Jones shares a similar sentiment, adding: “The
Commons due to the unprecedented Office
buy-to-let sector, however, did unfortunately face
for Budget Responsibility (OBR) forecast leak,
the Chancellor confirmed new taxation on
challenges [and] the announcements in the latest
residential investment income, tightened reliefs
Budget are only going to add to the pressures
affecting landlords, and set out further details on
I fear.”
‘Mansion Tax’ thresholds.
Regional divergence
There was also additional funding earmarked
for local authority planning departments,
Regional divides in the housing market remained
though no wider planning reform.
firmly in place throughout 2025, reflecting
Crucially, anticipated changes to Stamp Duty
longstanding structural differences.
failed to materialise, and no significant new
In the South of England – where prices are
measures were introduced to
highest and affordability
support housing supply or
ease development bottlenecks.
Barely weeks after the
Renters’ Rights Act had
pressures most acute –
INTERVIEWS Interbridge
and Equifinance look ahead at
a changing seconds market
SECOND CHARGE
FOCUS ISSUE
FEATURE The evolving use
of tech in a sector focused on
speedy problem-solving
The
Intermediary.
www.theintermediary.co.uk | Issue 28 | May 2025 | £6
reshaped the regulatory
landscape, these
announcements delivered a
second wave of upheaval for
property investors. As Davies
transactional activity was more
constrained. Even as stock
levels rose steadily, buyers
grew increasingly price-
THE RIGHT
TOOL FOR
THE JOB
sensitive, as experts already
report a slowing momentum
approaching the end of the
year. Post-Budget uncertainty
puts it: “The Autumn Budget
and tighter landlord margins
added friction rather than
added further strain.
momentum.”
Spencer explains: “2025
That friction has already
quickly became a buyers’
reverberated across the market.
market in the South of
The Budget’s measures
England with lots of stock but
landed at a time when
supply remained stubbornly
The growth, evolution and success
of second charge solutions
constrained and investor
confidence fragile.
fewer transactions.”
In contrast, Northern
regions – benefiting from
comparatively lower price points
Caroline Luxmore, chief commercial officer
and stronger affordability – delivered far more
of Recognise Bank, says: “Supply in residential
resilient performance. Spencer continues: “I’d
stayed roughly the same in 2025 as seen in 2024
say the most resilient part of the market was the
and from our perspective, it is hoped that this
residential market in the North where property
will change and increase with falling rates in
sales volumes outperformed those in London
2026. However, I think the market still needs
and the South East.”
to understand what changes things like the
mansion tax at the top of the market may have
In fact, across the North, and particularly the
North East, experts report sustained demand well
on the rest of the market – there is an intrinsic
into the autumn, driven by both first-time buyers
link here.”
and investors seeking more favourable yield
p
December
2025 | The Intermediary
The Intermediary
| July 2023
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