Autumn Budget 2025 – Key Property Points

As the UK grapples with a severe housing shortage, will new tax policies and a £5 billion spend pledge be enough to meet soaring rental and homeownership demand? This article breaks down a few of the new policies and what they mean for homeowners, investors and first-time buyers while attempting to convince you that it’s not all doom and gloom!

Labour’s new tax policy changes create a clear distinction between primary residential homeowners versus property investors. Capital gains tax exemptions for primary homes remain intact currently, meaning homeowners can sell their main home without tax burdens that apply to other property types. Primary home buyers also have the benefit of no increased stamp duty when purchasing a residential home as their main residence. In contrast, investors in the buy-to-let sector are now subject to increased stamp duty of 5% when purchasing additional property. This change raises upfront costs for investors seeking to expand their portfolios and could discourage some from purchasing additional rental properties. Although current CGT rates may encourage landlords to hold on to existing properties rather than selling which would help stabilise housing supply in the rental market. However, it should be noted that these new tax measures could limit the range of available rental properties if new investments slow whilst rental demand increases. Ultimately, these changes are intended to level the playing field for first-time buyers, helping more people achieve homeownership; whether this will manifest in practice is a different matter. Additional costs for landlords will automatically result in additional costs for renters.

The UK urgently requires an increase in the number of affordable homes in both the private and public sectors. New Chancellor Rachel Reeves has committed to a £5 billion investment in housing initiatives including £500 million added to the Affordable Homes Programme which is expected to finance around 5000 new affordable homes. £3 billion has been designated to support small and medium sized housebuilders, with particular emphasis on the build-to-rent sector. While the remaining £1.5 billion lacks a detailed outline, it will likely be used to address social housing and energy efficiency initiatives, underscoring Labour’s intention to improve overall housing standards. While any efforts to address the UK’s housing crisis are certainly welcome, I am concerned that this level of funding may represent only a small step forward relative to the scale of demand. However, I choose to see this funding as a sign of Labour’s commitment to fulfilling their pledge to build 1.5 million new homes throughout their term in office and improve housing conditions overall. An idea that myself and so many of my contemporaries have no choice but to remain hopeful over if we are to have any chance of home ownership.

Alongside plans to develop more affordable housing, the government seem committed in their support of 95% loan to value lending with the Mortgage Guarantee Scheme. Despite many lenders already offer their own 95% LTV mortgages, any government support for first-time buyers should be viewed with optimism. Coupled with the scheduled reduction in stamp duty thresholds from March 2025, we might see an increase in first-time buyers entering the market intending to get on the housing ladder before they are subject to higher fees.

A dissertation length report could easily be generated in response to Labour’s Autumn budget. Some may view the proposed tax increases as burdensome when more productive spending cuts could be made. However, it is essential to consider the benefits of these policies. In terms of the housing market, this current government appears to recognise the importance of homeownership and fair rental conditions for the average citizen.

But even if you remain despondent, I hope you’ll take inspiration from the historic significance of Rachel Reeves’ recent speech. In a world where women continue to advocate for fundamental rights, a female Chancellor proudly addressing the nation in a role that for the last 800 years has been held by a man, whether you agree with her or not, is truly an astonishing step towards equality.

Us on the sales team here at Coapt are committed to providing expert property industry knowledge. If you would like to discuss how the Autumn budget might affect your properties, please do not hesitate to give us a no obligation call to explore how we can best support you.

Madeleine Davies
Sales Consultant
01273 645797 EXT 2015