Real Estate Reads on 2025, The Budget & Beyond

Instinctif's Rebecca Warden-Brown hosted two illuminating episodes of Instinctif Talks, diving into Rachel Reeves' maiden budget announcement with Melissa York , Assistant Property Editor at The Times and The Sunday Times , and Kelly Edwards , UK Head of Public Policy at Instinctif Partners .

The property sector's response to Labour's first budget in over a decade has been notably measured, largely due to the absence of expected punitive measures like capital gains tax changes on property assets. Instead, the 2% surcharge increase represents a more subtle approach that will take time to filter through the market.

However, significant challenges lie ahead for Labour's ambitious housing targets. The commitment to delivering 1.5 million homes requires a 55% increase in planning permissions, while the construction industry continues to grapple with skills shortages. While the announcement of 300 new planning officers is welcome, this amounts to less than one per local authority, raising questions about effective implementation.

Several crucial areas were notably underdeveloped in the budget, including leasehold reform implementation details, comprehensive support for first-time buyers, and incentives for downsizers. The retrofitting commitment of ￡3.4 billion, while significant, falls short of the ￡13 billion manifesto promise.

Looking ahead, the industry should watch for key developments including the Planning and Infrastructure Bill (expected mid-2025), the Renters Rights Bill, and various consultations on ground rent and social housing rent settlements. Our experts emphasised the importance of proactive engagement with decision-makers and local authorities, rather than waiting for formal consultations.

The property sector faces both challenges and opportunities ahead, but success lies in proactive engagement and adaptation to this evolving landscape.

Email [email protected] to get in touch.