On 26th November, the Chancellor will deliver the second Budget of this Labour Government, a moment that comes at a critical juncture for the UK housing and mortgage markets. With transaction volumes remaining subdued, housebuilding targets under pressure and widespread concern about affordability, the sector is keen to see measures that restore confidence and address long standing structural challenges.
The Government has spoken repeatedly about stability, growth and economic reform. The Autumn Budget will be a real test of these ambitions. Industry leaders are calling for bold action that supports consumers, encourages investment and tackles the bottlenecks that continue to hold the market back.
Digital transformation to boost efficiency
One of the clearest priorities for many in the sector is the need to modernise the homebuying and selling process. Long delays, an over reliance on manual processes and high rates of fall through remain persistent issues. Ahead of the Budget, the Open Property Data Association (OPDA) is urging the Government to maintain momentum behind digital reform.
Paul Albone, non-executive director at the OPDA, said: “We urge the Government to prioritise investment and policy support for digital transformation in the housing market. The benefits are clear: faster completions, fewer fall-throughs, and a more resilient, modern property ecosystem.
“The housing market is vital to the UK economy, contributing around £100bn annually and employing 1.2 million people. But the current system is broken. Transaction times have increased by 60% since 2007 and around one in three transactions fail, costing buyers and sellers around £400m per year in wasted costs.
“This Government has made some important steps already. The Ministry of Housing, Communities and Local Government is consulting on plans to transform the home buying and selling process, and it recognises that technology and trusted data frameworks must underpin housing reform. But it must be bold in its actions.
“To truly fix the homebuying experience, we need support and investment in a connected digital infrastructure underpinned by commonly adopted data formats and trust standards, like the Property Data Trust Framework developed by the OPDA.
“The future of property is digital and it’s time we embraced that. I urge Rachel Reeves to use her budget to incentivise investment in digital transformation and get our housing market working properly.”
Support for buyers and greater market confidence
The market is also looking for a combination of short-term and long-term measures that strengthen confidence. Richard Pike, chief sales and marketing officer at Phoebus, said the delays to the Budget have created uncertainty and that the sector now urgently needs clarity.
He said: “A budget this late in the year hasn’t helped anyone apart from the Government who seem to be changing the content based on the rhetoric from senior commentators and outcry from the voting public. The announcement and clarity can’t come soon enough.
“I’d like to see Rachel Reeves maintain confidence in the housing market through a combination of long-term supply plans and more short-term demand support. Let’s face it, even though Steve Reed the housing minister remains bullish about building 1.5 million homes by the end of the current parliamentary term, there is absolutely no market confidence in this.
“The recent mortgage market reforms relaxing LTI restrictions on lenders will help to increase levels of mortgage lending. In the same vein, I would also like to see planning laws changed to make developers bound by timescales, rather than being able to sit on land and property indefinitely, watching values increase rather than getting on with development.
“In the short-term, we would like to see more targeted support for first-time buyers, helping them onto the housing ladder, as well as tax incentives for moving up the housing chain. The announcement of such measures will be a huge shot in the arm for the market. Stamp duty is an obvious play here, but this needs to be thought through as you could cause fast house price inflation and not end up really helping FTB’s at all.
“I would also urge Rachel Reeves to encourage economic growth by incentivising entrepreneurs to launch businesses with tax breaks on exit rather than increasing capital gains tax. We need to encourage economic investment, not hinder it.
Landlords need some respite – buy-to-let (BTL) properties are becoming less profitable as landlords face higher regulatory costs, increasing pressure on a private rental sector that is already strained, when more stock is required to ease the housing issues in this country.”
Protecting older homeowners
Speculation surrounding potential wealth taxes has intensified, with many concerned about the impact on older homeowners. LiveMore has cautioned that potential measures such as a mansion tax could disproportionately affect those who are asset rich but cash poor.
Leon Diamond, CEO at LiveMore Mortgages, said: “Rachel Reeves may have said we all have to contribute to protect Britain’s ailing finances but it’s clear that those perceived as the wealthiest will face the biggest burden. Her plans for a mansion tax will disproportionately affect older homeowners with larger properties, many of whom are asset-rich but cash-poor. Their home may have appreciated in value, but many older homeowners are on fixed incomes and can ill afford a new levy.
“At LiveMore, we know that a growing number of older people are reliant on their property wealth for retirement planning and need to release funds to support their lifestyle. We urge the Government not to introduce any tax measures that could affect their ability to release funds when they need it most and affect some of the most vulnerable in society.”
A crucial moment for the UK housing market
The sector is united in its call for a Budget that supports buyers, protects vulnerable households, encourages investment and accelerates modernisation. From digital reform and planning policy to tax stability and first-time buyer support, there is clear demand for action that addresses both short term pressures and long-term structural challenges.
As the Chancellor prepares to set out her plans, the industry will be watching closely. With the right measures, this Budget could provide the reset needed to build a more efficient, accessible and confident housing market.
