Edingtons Budget Commentary – Stability, a Soft Landing, and Renewed Buyer Confidence

This Budget delivered fewer shocks than many anticipated which, in itself, is welcome news for the property market. For months buyer sentiment has been held back by uncertainty and speculation about potential tax changes. Instead we’ve been given a soft landing, with most headline measures pushed out to 2027/28 and no immediate restructuring of the residential property landscape.

The lack of change to Stamp Duty Land Tax (SDLT) is particularly significant. Many buyers had paused decisions in the hope, or fear, of a major overhaul. With SDLT untouched, it removes a major variable and allows buyers to move forward with clarity. Similarly, the decision not to alter capital gains tax on primary residences maintains the long-standing stability of homeownership in the UK, which will be reassuring to families and long-term buyers.

The introduction of what is effectively a “mansion tax” at around £7,500 a year for homes valued above £5 million will undoubtedly draw headlines, though it is more of a restructured council tax band than a full-scale wealth tax. For the prime London market this is unlikely to dampen demand significantly, particularly given that many buyers at this level prioritise location, lifestyle, and long-term value over incremental annual costs. Nonetheless, it will become part of affordability assessments for some purchasers and we expect it to feature in negotiations as the details become clearer.

Private landlords face an additional 2% tax on income, although this does not apply to company structures. For investors already operating via limited companies, this may reinforce current strategy. For unincorporated landlords it could prompt a review of existing arrangements, particularly where margins are tight. We may see some landlords exit or restructure their portfolios, which could modestly increase supply in certain segments.

Broadly, however, the striking feature of this Budget is how little comes into effect immediately. With most changes deferred to 2027/28, the near-term picture is one of stability, and we are already seeing the impact of that. Over the past week, enquiries at Edingtons have risen sharply. Buyers who had been waiting for clarity are re-engaging and several active clients have indicated they are ready to progress rather than delay further. A market that has felt cautious for much of the past year is beginning to show genuine signs of forward momentum.

With borrowing costs stabilising and a calmer political and economic backdrop, the coming months may offer a valuable window for purchasers before competition picks up. As always, our focus at Edingtons remains on advising clients with care, cutting through noise, and securing the right property at the right price.

If you’ve been waiting for certainty before progressing your Property Search, this is a timely opportunity, contact us to discuss our Property Search Services and how we can help you move forward.