Seven days to the Budget: what is in store for the property market?
By Author Andrew Stanton CEO Proptech-PR
With the Autumn Budget fast approaching, the UK housing sector is looking to Chancellor John Healey for answers. Will the Government provide meaningful support for first-time buyers, give landlords greater certainty, stimulate housebuilding and restore confidence in a property market that remains under pressure?
The Budget on 28 October will provide some answers. But for an industry that underpins a substantial part of the UK economy, the more important question is whether the measures announced will address the structural problems facing housing or simply offer short-term relief.
Getting first-time buyers on the ladder
One of the most significant announcements expected is further detail on the Government’s Your First Home scheme, designed to help first-time buyers purchase new-build properties.
The proposed scheme would allow eligible buyers to purchase a participating developer’s new-build home with a deposit of just 2.5%, supported by a 20% government-backed equity loan. The intention is to help those who cannot rely on financial assistance from the so-called Bank of Mum and Dad.
The scheme could provide a welcome boost to new-build sales, but its success will depend on the detail. Eligibility criteria, property price caps, the cost of borrowing and the availability of participating homes will all determine how many buyers actually benefit.
There is also a wider question. Helping people buy newly built homes is valuable, but the UK housing market depends on transactions across the entire existing housing stock. First-time buyers often need sellers to move, those sellers may be looking to trade up, and older homeowners may wish to downsize.
A policy that stimulates one part of the market without encouraging movement elsewhere risks treating a symptom rather than the underlying problem.
Will landlords get some breathing space?
The private rented sector will also be watching closely. Landlords have faced a combination of regulatory change, financing pressures and uncertainty over future taxation. The question is whether the Budget will provide a clearer framework for investment or add another layer of complexity.
Changes to the taxation of property income are already scheduled to take effect from April 2027. There has also been speculation about capital gains tax, the treatment of holiday lets and wider reforms to property taxation. However, not every reported proposal will become policy.
The danger is that policymakers focus on the tax collected from landlords without fully considering the consequences for tenants. If higher costs encourage more landlords to sell, the number of properties available to rent could fall further. That may increase competition between tenants and put additional pressure on rents.
Equally, landlords should not be treated as a single group. There are differences between professional portfolio operators, small-scale landlords and investors providing specialist accommodation. A sensible approach would recognise those differences while encouraging investment in safe, well-maintained and energy-efficient homes.
For PropTech, a stable and investable rental market matters. Businesses developing property management platforms, compliance tools, tenant services and data-led investment products need customers who can plan beyond the next tax announcement.
Housebuilding needs more than a target
The Government’s ambitions for housing supply will ultimately be judged by the homes delivered, not the targets announced.
Developers need viable sites, planning certainty, access to finance, sufficient labour and confidence that buyers will be able to purchase the finished product. Even where planning permission exists, rising costs or weak sales can prevent a development from progressing.
This is where the Budget could have a lasting impact. Measures that improve the viability of developments, unlock brownfield land or support infrastructure investment may do more for housing supply than a headline-grabbing announcement that has little effect on the economics of building.
There is also an opportunity to recognise the role of technology in improving delivery. Better land and location intelligence, more accurate demand forecasting, digital planning processes and improved construction data can help developers make better decisions earlier.
PropTech cannot make an unviable development viable through technology alone. But it can help reduce information gaps, improve efficiency and identify opportunities that might otherwise be overlooked. Government policy should encourage these practical applications rather than treating technology as an optional extra.
The property tax question
Stamp duty remains an important part of the debate. The tax can influence decisions about when to move, whether to downsize and how much money households have available for their next purchase.
However, Prime Minister Andy Burnham has ruled out changing or scrapping stamp duty in this Budget. The market should therefore be cautious about treating abolition as an imminent prospect.
Meanwhile, the proposed High Value Council Tax Surcharge, often described as a mansion tax, is already part of the Government’s plans for higher-value properties. Its implementation and any further changes will be watched carefully by homeowners and the property industry.
The broader challenge is to create a tax system that raises necessary revenue without unnecessarily discouraging transactions, investment or the efficient use of housing stock.
What does this mean for Proptech?
For the Proptech sector, the Budget is about more than the immediate effect on house prices or transaction volumes. It is about the environment in which businesses operate.
A more active housing market creates opportunities for estate agency software, mortgage technology, conveyancing platforms, property data providers and services supporting landlords and tenants. Conversely, uncertainty can delay investment decisions and make customers more reluctant to commit to new technology.
Founders and investors should therefore look beyond individual announcements to the direction of travel. Will policy encourage investment? Will it make transactions easier? Will it improve the supply and affordability of housing? And will it give businesses the confidence to develop products that address genuine industry problems?
These are the questions that matter when assessing the long-term prospects of Proptech.
Certainty would be a result in itself
The Chancellor faces difficult choices, and no single Budget can solve the UK’s housing challenges. But it can establish a clearer direction. First-time buyers need a realistic route to ownership. Renters need a supply of good-quality homes. Landlords need a workable investment environment. Developers need viable projects, and technology companies need a market willing to invest in better ways of working.
The test on 28 October will be whether the Government can bring those interests together. Rather than leading with some ‘bus related’ policies!
Housing policy is often discussed in terms of competing groups: buyers against renters, landlords against tenants, or developers against local communities. Yet a functioning housing market requires all of them to work together.
For Proptech, the opportunity is to help make that market more transparent, efficient and responsive to demand. The Budget can create the conditions for progress, but turning policy into better outcomes will require sustained action from Government and industry alike.
Ultimately, the housing sector does not need another collection of isolated announcements. It needs a coherent plan that connects affordability, supply, investment and innovation. The Budget is an opportunity to demonstrate that such a plan exists.’
