Post Budget Insights: What Yesterday’s Statement Really Means for the UK Property Market

Yesterday’s Budget delivered something the property market has been craving for months: clarity. After weeks of speculation about major tax changes, the final announcement was far less dramatic than many feared, and this is very good news for buyers and sellers alike.

A calmer outlook than the headlines suggest

Much of the media reaction focused on the new mansion tax for properties above £2m, but the practical impact on the market will be far more measured. The prime market is resilient, international and driven by long term motivations. Owners in this segment do not typically take drastic action in response to incremental annual costs. For this reason, we do not expect any kind of mass exit or destabilisation at the top end.

Historically, when similar measures have been introduced, the market absorbed them and moved on. Prime property remains a safe, long term asset and that is unlikely to change.

Clarity will unlock momentum

Perhaps the biggest takeaway from the Budget is the stability it restores. Buyers and sellers have been holding back, waiting to understand how the changes might affect their plans. With no major adjustments to stamp duty or mainstream property taxes, the landscape is now far clearer.

This clarity tends to unlock activity. We expect to see more listings, more viewings and an increase in sales agreed as confidence returns. Many buyers who paused their search earlier this year will now reengage, and sellers who were hesitant may find that this is a good moment to step forward.

Prime buyers will adapt, not retreat

High net worth buyers are some of the most adaptable participants in the market. The additional costs linked to the mansion tax are usually absorbed as part of long term ownership, especially when balanced against the strong track record of UK property as a wealth preservation asset.

For some buyers, this moment will present opportunity. Slight shifts in sentiment often create short lived windows where negotiation becomes more possible before the market finds its rhythm again.

Rental market adjustments, but no dramatic shifts

Landlords will see higher income tax on rentals, which may affect investor appetite at the margins. However, existing rental supply is unlikely to vanish and tenant demand remains robust. Any adjustments are expected to be gradual rather than disruptive.

Looking ahead

The combination of clarity, stable interest rates and renewed confidence should support a more active end to the year and set a stronger tone for early 2026. Buyers and sellers who act now may benefit from being slightly ahead of the next wave of activity.

Best,

Dominic