Autumn Statement could derail property market positivity

The latest market insight by estate agent comparison site, GetAgent.co.uk, has found the vast majority of estate agents believe that the government has, so far, put too much emphasis on letting sector reform and not enough focus on boosting the housing market.

The survey* of UK estate agents, commissioned by GetAgent, found that 68% believe that the new Labour government has turned too much focus to reforming the rental sector with little consideration given to boosting the housing market.

What’s more, 66% believe that this will remain the case during the upcoming Autumn Statement, with just 9% believing we will see more focus on the sales sector, whilst 25% believe there could be a balance between the two.

Following a period of stagnation caused by higher interest rates, things have been looking up for the sales sector in 2024. Mortgage approval levels have regained strength, house prices are starting to climb and monthly sales volumes topped the 100,000 threshold in August – the first time they have done so since December 2022.

Despite improving market conditions, 69% of the agents surveyed by GetAgent believe that some form of government intervention is needed to help drive the market back to full health.

When asked what they would like to see in the Autumn Statement to achieve this, an initiative focussed on stamp duty relief for the wider market was the most popular option, followed by an extension to current stamp duty thresholds for first-time buyers.

Scrapping changes to capital gains tax and inheritance tax also ranked high, along with the re-introduction of initiatives such as Help to Buy.

However, it looks to be an Autumn Statement of disappointment in this respect, with no sign so far that any initiatives designed to boost the sales market are likely to appear.

In fact, the Labour government has been vocal in its warning that this Autumn Budget will be a painful one, as it’s going to have to get tough on spending, taxes, and welfare.

No surprise then, that 81% of the agents surveyed by GetAgent believe that the upcoming Autumn Statement has the potential to impact the current positive seen across the property market for the worse.

Co-founder and CEO of GetAgent.co.uk, Colby Short, commented:

“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.

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 Rental Reform Bill and increases in CGT may not directly benefit house prices, they could prompt more sales from landlords and owners of second homes. This boost in transaction volume can provide a positive development for agents.”

Data tables and sources