The Intermediary – October 2025 - Flipbook - Page 81
AU T U M N B U D G E T
Rapid reaction
That leaves Income Tax and VAT. Raising
better still scrap it. If not, why not re-introduce
either would break manifesto pledges, but the
a holiday? When Rishi Sunak did so during
Chancellor may view this as the lesser evil
lockdown, economic activity was boosted. The
compared to a patchwork of smaller measures
market picked up and both vendors and buyers
that risk undermining growth and confidence.
spent money on all the activities associated with
buying and selling homes, and in turn generated
additional tax and economic growth. A simple
Alistair Nimmo
and elegant solution.
is director of marketing
Mitchell Martyn
at Family Building Society
is property expert at
The recently formed and independent Housing
Pure Property Finance
Policy and Delivery Oversight Committee,
chaired by Sir Vince Cable and backed by Family
Wealth taxes, adjustments to CGT, and even
Building Society responded to widespread
changes to the way in which Council Tax is
speculation that the Chancellor is considering
calculated – no matter what we see, I urge the
significant changes to property taxation.
Government to strike a balance between what’s
The housing market is not working efficiently,
and property taxation is a significant factor. The
case for major reform of the whole property tax
fair and what’s economically viable.
This next Budget will prove to be a pivotal
moment in not just the UK’s financial trajectory,
system is unarguable, but tinkering at the edges
but the viability of property investment
won’t work. One suggestion, adding NI tax on
within the nation as a whole. Interest rates
landlords would be most likely to lead to higher
on mortgages are slowly coming down, which
rents for tenants – a tax on working people.
signals somewhat of a conclusion to the turmoil
Wholesale reform is needed to make the
witnessed throughout ‘the Covid years’. But one
market work more efficiently and achieve
policy too far and the UK is at risk of being right
improvements in housing provision for owners
back at square one.
and tenants across the country.
The drop in base rate is good news for the
The economic benefits are clear, the right
quality of homes in the right place seems
population. It has enabled those on the fence
around buying a house or taking out a loan to
obvious. But our market is beset by outdated
take the plunge and put their financial plans
planning regulations, spiralling cost of building
into action. If this Budget lands correctly, we
materials and lack of a skilled workforce. These
shouldn’t see much disturbance in the base
issues must be addressed, but that will take time.
rate. But if not, things could start going in the
One quick fix would be to reduce Stamp Duty, or
opposite direction.
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