A new report raises concerns among estate agents about the UK’s upcoming Autumn Statement and its focus on the rental sector.
- 68% of estate agents believe the focus on rental reforms outweighs efforts to boost the housing market.
- There is apprehension that the Autumn Statement may not address the needs of the sales sector.
- Many agents advocate for Stamp Duty relief and other initiatives to support the market.
- The market has shown signs of recovery, but excessive focus on rental reforms may stall this progress.
In the lead-up to the UK’s Autumn Statement, a survey of estate agents conducted by GetAgent.co.uk reveals significant concerns among professionals regarding the government’s priorities. According to the survey, 68% of the agents feel that there is an excessive focus on rental sector reforms at the expense of measures that could invigorate the broader housing market. This sentiment flows from the Labour Government’s continued emphasis on reforms aimed at the rental market, which agents feel could overshadow the critical needs of the sales sector.
The survey highlights that only a marginal 9% of agents expect the Autumn Statement to bring a shift towards addressing the sales sector, leaving many apprehensive about the forthcoming policies. In contrast, a quarter of those surveyed suggest there is room for more balance between rental reforms and sales incentives, urging the government to broaden its scope.
Despite these concerns, the residential property market has demonstrated resilience with notable improvements. Mortgage approval rates have strengthened considerably, and house prices have seen an upward trend with monthly sales volumes surpassing 100,000 in August for the first time since December 2022. These positive shifts, however, have not deterred 69% of the surveyed agents from calling for deliberate governmental action to secure the market’s trajectory towards full recovery.
Among the desired measures is the introduction of Stamp Duty relief, which one-fifth of respondents identified as a critical intervention that could bolster market activity. There is a push for the extension of current Stamp Duty thresholds for first-time buyers and the reconsideration of changes to Capital Gains and Inheritance Taxes. The reintroduction of programmes like Help to Buy has also been suggested to maintain the burgeoning sales sector momentum.
Crucially, 81% of the respondents voiced concerns that the Autumn Statement could inadvertently disrupt the positive trends currently observed in the property market. Colby Short, CEO of GetAgent.co.uk, expressed apprehension regarding the government’s past initiatives focused heavily on the rental sector, potentially at the cost of sales market vitality. The worry is that any perceived negativity in the government’s fiscal policy could prove detrimental, similar to the decline seen post the Truss mini-Budget.
Colby Short stated, “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.” Despite the reticence felt by many estate agents, the market’s inherent momentum has been noted with potential increases in transaction volumes, particularly from landlords and second-home owners, driven by market reforms.
The upcoming Autumn Statement holds considerable influence over the trajectory of the UK property market, with hopes for a balanced approach.
