The Intermediary – November 2025 - Flipbook - Page 64
RESIDENTIAL
Opinion
Housing policy
stability matters
for homebuyers
A
s the Autumn
Budget approaches,
uncertainty over
Government housing
and tax policy has
once again become
one of the biggest factors influencing
homebuyers. Unsurprisingly, many
of the conversations we’re having
with brokers right now are focusing
on what the Budget might bring –
whether that’s potential changes to
Stamp Duty, landlord taxation or new
forms of support for first-time buyers.
The outcome of those potential
changes will be critical in shaping
confidence and momentum as we
move into 2026.
Policy uncertainty
Our latest broker survey shows that
Government housing and tax policy,
interest rates, inflation and the cost
of living are the most cited factors
shaping client decision-making in the
year ahead.
Notably, one in five (20%) brokers
say potential housing and tax reforms
are the single most important
influence on their clients’ plans –
ranking above mortgage regulation,
affordability rules (19%) and even
the cost of living (14%), which
has dominated conversations in
recent years.
This heightened sensitivity comes
amid speculation about major changes
to the property tax system. Among the
proposals reportedly under review are
spreading Stamp Duty payments over
several years, shiing liability for part
of the charge to sellers above £500,000,
or replacing Stamp Duty entirely with
an annual property levy.
While such ideas are intended to
ease pressure on buyers, uncertainty
over their introduction risks
creating hesitation.
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The Intermediary | November 2025
In practice, this means that
many people are pausing their
homebuying or selling ambitions.
Across the industry, there are signs
that uncertainty over potential tax
and housing policy changes is leading
buyers and sellers to take a ‘wait-andsee’ approach until they know what
lies ahead.
Facing new challenges
This is particularly important at
a time when many borrowers are
already facing extra challenges. More
than one in five brokers (22%) say
clients with non-standard careers have
had to jump through additional hoops
to prove affordability, while 20% say
first-time buyers now rely on outside
financial support. For many would-be
homeowners, that means their plans
are already finely balanced.
As a result, many brokers see scope
for the industry to do more. They’re
calling for greater product innovation
to beer serve a wider range of
borrowers, as well as stronger support
for those struggling with repayments.
There’s also recognition of the need
for more flexibility for vulnerable
customers and those with complex
credit histories. Together, these calls
show that the market recognises the
importance of adapting to support
borrowers through periods of change.
However, many brokers see scope
for the industry to do more. They’re
calling for greater product innovation
to beer serve a wider range of
borrowers, as well as stronger support
for those struggling with repayments.
There’s also recognition of the need
for more flexibility for vulnerable
customers and those with complex
credit histories. Together, these views
show that the market itself recognises
the importance of adapting to support
borrowers through periods of change.
AARON SHINWELL
is chief lending officer at
Nottingham Building Society
Collaboration and stability
I hope that any sweeping changes to
policy will be considered carefully.
Any move towards an annual property
tax, for instance, would need to
be managed to avoid discouraging
downsizing or creating unpredictable
ongoing costs for retirees and families.
There is also a risk of regional
disparity and fairness – with areas
such as London and the South East,
where a higher proportion of homes
exceed £500,000, potentially being
hit harder.
Brokers are at the heart of the UK
mortgage market, advising almost
every homebuyer. Their insights give
a real-time view of what’s happening
on the ground. They tell us that when
government policy changes come
without consultation or sufficient
notice, uncertainty grows.
In the lead-up to the Budget, we
always see an increase in speculation
about what may or may not be
announced but all too oen this
just creates further hesitation in
the market. What’s needed now is
reassurance from the Chancellor,
not more uncertainty, so that buyers,
brokers and lenders can plan with
confidence.
Clarity and confidence
We support reforms that make the
housing system fairer, more flexible
and more accessible – particularly
for first-time buyers and those
underserved by traditional lending
models. The upcoming Budget is a
vital opportunity for the Government
to put an end to speculation and
provide the clarity to plan ahead
with confidence. ●
