We need clarity and stability ahead of the autumn budget: Mark Manning
The autumn budget is fast approaching, and for many in the property sector, it feels like a critical moment.
After a turbulent year for the economy, everyone is anxiously awaiting clarity on what the Chancellor might announce in November. Rumours about possible reforms to property taxation and landlord legislation are already sparking debate, and this uncertainty alone is enough to slow decision-making among buyers and sellers. Here’s what I’d like to see announced on November 26 to help boost the property market:
Stamp duty has long been one of the most contentious taxes when it comes to buying a home, and while I would welcome a simplification or reduction, any changes must be well thought through.
Stamp duty in its current form acts as a barrier for many, particularly at the top and lower ends of the market where it can deter buyers. Removing or reducing that barrier could unlock more activity, especially among first-time buyers and those looking to move into larger or more expensive homes.
However, the Government would lose money if they reduced or abolished stamp duty, so they’d need to tax people in new ways. A broader wealth tax determined by the sale price of a property is one option on the table, but I’m against it.
I’d rather see no reforms to stamp duty at all than to see new taxes being introduced that will adversely impact people buying higher value properties as it will slow the market.
There are also rumours that capital gains tax could be applied to primary residences, which I hope isn’t something that happens as all it will do is slow the market by discouraging many from selling.
The private rental sector is another area under scrutiny. Some have suggested the introduction of national insurance contributions on rental income. While the rationale may be to align property earnings with other forms of income, landlords are already shouldering significant financial pressure from recent tax changes and regulatory demands.
Adding yet another burden could further shrink rental supply at a time when demand is growing. What the sector needs instead are new incentives that encourage existing landlords to stay in the market and new ones to enter it.
For many, taking the first step onto the property ladder is financially challenging. The Government’s previous Help to Buy scheme worked well and a new, similar Government-backed scheme covering the whole market would provide a much-needed boost and encourage more people to buy their first home.
Additional measures such as extended stamp duty reliefs for first-time buyers could also help unlock this segment of the market. First-time buyers are the foundation of the property market and anything that incentivises them to enter the market would be welcomed.
The UK still has a major housing shortage, and despite successive governments pledging to build more homes, delivery has consistently fallen short of targets. Tackling the barriers within the planning system and streamlining the approvals process would make a huge difference.
Ultimately, what everyone wants from the autumn budget is clarity and stability.
By setting out clear, supportive policies the Chancellor has an opportunity to boost the property market and economy as a whole. The sector does not need sweeping new taxes or dramatic interventions. It just needs a steady hand and reforms that encourage entry and movement.
Mark Manning is the managing director of Manning Stainton estate agents.