According to the latest poll from Mortgage Solutions, a quarter said only a few customers were changing their plans and 15% said they had seen no change in buyer behaviour.
The Budget, which is due to take place on 26 November, is rumoured to include reforms to council tax, an annual property tax to replace stamp duty, capital gains tax (CGT) on homes over £1.5m, the inclusion of National Insurance on rental income, and cuts to cash ISA allowance limits, as well as potential changes to income tax, VAT and inheritance tax.
Zoopla’s latest House Price Index for October indicated that the number of new sales agreed fell for the first time in two years, which it partially attributed to buyers adopting a more cautious approach to purchases ahead of the Budget, especially around higher-value homes.
Phil Leivesley, director of mortgages at LDN Finance, said: “We are very much seeing a reticence in buyers proceeding with purchases – particularly of high-value properties – whilst there is so much speculation about the contents of the Budget.
“Leaks, gossip and kite-flying by governments are never helpful for the market in the lead-up to any fiscal event, particularly one that is anticipated to be so significant.
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“The rumoured stamp duty reforms are making clients take a pause before committing to a purchase, which is no surprise given how consequential stamp duty changes have been to the market historically. Uncertainty is never a good thing, and right now, there is no shortage of it.”
Ying Tan, Habito’s CEO, said: “Budget jitters are real – however, so is buyer intent”.
He continued: “With speculation swirling about possible tax changes and property tax reforms, perhaps changes to stamp duty, maybe tweaks to housing incentives, many customers are opting to wait and see before locking in big financial decisions.
“At Habito, we’re seeing that play out across the board. First-time buyers are holding back in case there’s fresh support for new entrants, while homeowners nearing the end of their deals are watching for signs of rate shifts or policy updates. But underneath that caution, demand is still there. We’re helping plenty of people get advice now so they’re ready to move fast once there’s more clarity after the Budget.
“Budgets always create a bit of noise, and this one’s no different. What really matters is helping customers cut through it, with clear, trusted advice that gives them the confidence to make smart choices, whatever the Chancellor announces. That’s where brokers and advisers come into their own, turning uncertainty into opportunity for their customers.”
Ben Thompson, deputy CEO of Mortgage Advice Bureau (MAB), agreed that due to Budget rumours – especially around a property tax – it was “clear that many people are now putting plans on hold”.
He added that this was more “pronounced at the higher end of the market”, which is “already battered” by huge stamp duty rates of various shapes and sizes.
“Whether these rumours are founded or not, we all have to hope that any possible changes to the housing market are sensible, proportionate, and well-targeted. We should also remain optimistic that we start to get back to a routine where the Budget becomes a routine update for most people.
“It shouldn’t be something that stops various industries from trading in normal patterns to the direct detriment of the UK economy, consumer confidence, and stability. The good news is the current government appears to clearly understand the direct link between a healthy housing market and the economy – meaning that any tweaks or changes will hopefully be positive ones. Alternatively, no change at all wouldn’t be a disaster,” Thompson noted.
Landlords reassessing strategies in lead-up to Budget
Dina Bhudia, P2M Group’s CEO, said ahead of the Budget, many landlords were “reassessing their property strategies in anticipation of potential policy changes”.
She continued: “While uncertainty remains around tax and housing legislation, a clear trend is emerging: investors are increasingly seeking opportunities to add value to their portfolios rather than relying solely on capital appreciation.
“In particular, there has been a noticeable rise in interest toward multi-unit freeholds and house in multiple occupation (HMO) conversions. These types of properties allow landlords to maximise rental yields by generating multiple income streams from a single asset. In a market where margins are tightening, such strategies offer a practical way to boost revenue and long-term returns.”
She noted that the landscape for landlords is “becoming more complex”, pointing to the Renters’ Rights Bill becoming law last week, which signals a “new era of regulation and tenant protection, meaning landlords must adapt to stricter compliance requirements and changing tenancy structures”.
“With these reforms on the horizon, property owners are increasingly seeking professional advice to navigate the evolving rules.
“Now, more than ever, landlords need clarity, strategic insight, and expert guidance to make informed decisions. Whether through restructuring portfolios, exploring higher-yielding opportunities, or preparing for legislative changes, the key to success lies in staying proactive and adaptable in an ever-changing market,” Bhudia said.
‘Bigger picture’ around Budget’s impact on swap rates
Lea Karasavvas, managing director of Prolific Mortgage Finance, said there was a “bigger picture” around the swap market and the opportunities these delays cause.
“A positive inflation result drove swaps down by some way and has presented the lowest swap rates we have seen since mid-2022. This has driven rates down considerably and now presents us with fixed borrowing at the lowest we have seen all year.
“When we look at this in conjunction with raft of loan to income improvements the market has presented, there is an argument to say the run-up to the Budget presents a great window of opportunity for people looking to move with enhanced rates, less competition due to those waiting post-Budget to move and better criteria enhancements,” he noted.
Figures from Chatham Financial show that two-year swap rates are 3.5% as of 30 October, which is down from 4.2% last year. Five-year swaps are 3.6%, a decline from 4.03% in the same period last year.
Karasavvas said that whatever happens in the Budget, it could have an “adverse impact on the current swaps”.
“For me, if people see an opportunity to strike in a market that is well-positioned, I would strongly suggest… acting upon it,” he noted.
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