Agents fear Chancellor could stall housing market recovery

Estate agents across the UK are worried that Chancellor Rachel Reeves’ upcoming Budget could derail the recent recovery in the housing market, a survey reveals. 

The majority (68%) of agents surveyed by GetAgent.co.uk believe the new Labour government has focused too heavily on reforming the rental sector, neglecting measures to boost the sales market.

This sentiment extends to the Budget, with 66% of agents anticipating a continued focus on rentals.

Only 9% believe the government will prioritise the sales market, while 25% see a potential balance between the two sectors.

Initiatives penalising landlords

The firm‘s chief executive, Colby Short, said: “Whilst the new Labour government has been quick out of the blocks with a range of property market initiatives since it came to power, these have been largely focussed on rental sector reform and further penalising landlords.

“We’ve seen very little in the way of stimulus for the sales sector and this looks likely to remain the case once the dust has settled on the upcoming Autumn Statement.”

He added: “Given the decline that followed the disastrous Truss mini-Budget, the nation’s agents are quite rightly apprehensive that an overly negative budget could dampen the positivity that has been building across the property market so far this year.

“However, the market has gained a great deal of momentum in recent months and whilst the Renters’ Rights Bill and increases in CGT may not directly benefit house prices, they could prompt more sales from landlords and owners of second homes.”

Government intervention is necessary

Despite recent positive indicators like rising mortgage approvals and climbing house prices, 69% of agents still believe government intervention is necessary to fully revitalise the market.

Desired measures include stamp duty relief, extended first-time buyer thresholds and the return of initiatives like Help to Buy.

However, these aspirations seem unlikely to be met, with the Labour government hinting at a ‘painful’ Budget focused on tightening spending and higher taxes.

Unsurprisingly, 81% of agents say they fear the Budget will negatively impact the market’s current positive trajectory.

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