Research from Nottingham Building Society, which surveyed around 500 UK mortgage brokers, found that 19% pointed to mortgage regulation and affordability rules, and the same number cited energy and utility costs.
Only 17% pointed to interest rates as the most important factor shaping client decisions in the year ahead.
The cost of living was cited by around 14% of mortgage brokers as the foremost factor impacting customer choices.
The research comes as the Autumn Budget fast approaches, with rumours that there will be reforms to the property tax system – for instance, changes to the stamp duty system that would spread payments over several years rather than a lump sum, or it only applying to higher-value properties over £500,000.
Some rumours also suggest that stamp duty could be abolished altogether and replaced with an annual property levy.
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A recent poll by Mortgage Solutions revealed that around 60% of brokers said customers were changing their plans ahead of the Autumn Budget.
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Brokers surveyed said clarity, innovation and better support were crucial to enable customers.
A quarter said they wanted more product innovation to help more borrowers, while 24% said they wanted more support for those struggling with repayments.
A fifth said they wanted greater flexibility for vulnerable customers and those with adverse credit.
More than one in five – 22% – said clients with non-standard careers have to “jump through extra hoops” to prove affordability and a fifth said first-time buyers rely on outside financial support.
Nottingham Building Society said that against this backdrop, uncertainty over future tax and housing policy “risks compounding existing challenges and making it harder for clients to plan with confidence”.
Rumoured Budget changes ‘creating more uncertainty’
Aaron Shinwell, chief lending officer at Nottingham Building Society, said brokers are at the “heart of the UK mortgage market, advising almost every homebuyer, so their insights give a real-time view of the challenges and decisions people face”.
“What’s clear, with the Budget approaching, is that sweeping changes introduced without careful planning risk creating more uncertainty and reducing market fluidity.
“Any move to annual property taxes would need to be carefully managed to avoid disincentivising downsizing, reducing housing mobility, or creating unpredictable, ongoing costs for retirees and families. These changes could particularly impact pensioners who are ‘asset-rich but cash-poor’, as well as regions such as London and the South East where a much higher proportion of properties fall above £500,000,” he said.
Shinwell noted that “policy stability is crucial”, as brokers say that without it, clients delay decisions, which then restricts both supply and demand.
“That doesn’t just affect those looking to buy or sell today, but has wider consequences for the health of the housing market and the broader economy.
“We support reforms that make the housing system fairer, open up opportunities for first-time buyers and better serve those who are often under-served in today’s market.
“The Autumn Budget is a vital opportunity for the government to provide clarity and confidence. Done right, reforms can support all parts of the housing market – from first-time buyers to downsizers to renters – and ensure households can make long-term plans with certainty,” he said.
