Uncertainty over housing policy is holding back homebuyer activity as the Autumn Budget approaches, according to Nottingham Building Society.
The survey found one in five (20%) brokers said possible policy changes were the most important issue shaping client choices in the year ahead.
Fewer brokers pointed to mortgage regulation and affordability rules (19%), energy and utility costs (19%) or interest rates (17%).
Only 14% said the cost of living was the main concern.
Brokers said the need for clarity is urgent as households face more financial pressure.
More than one in five (22%) said clients with non-standard careers found it harder to prove affordability, and one in five (20%) said first-time buyers (FTBs) were turning to outside help for deposits.
Additionally, data showed that 25% of brokers called for more product choice for borrowers, and nearly as many (24%) want better support for those struggling with repayments.
One in five (20%) asked for greater flexibility for vulnerable customers and people with adverse credit.
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.”
Shinwell added: “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.
“Policy stability is crucial. Brokers tell us that without it, clients delay decisions, which in turn 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.”
He said: “We support reforms that make the housing system fairer, open up opportunities for first-time buyers and better serve those who are often underserved 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.”
