Foxtons Group has welcomed the Government’s decision to prioritise stability over major policy change in the Autumn Budget, arguing that clarity on taxation and housing measures will help unlock activity after months of uncertainty.
The Chancellor, Rachel Reeves, avoided significant intervention in the property market, choosing instead to focus on longer-term fiscal tightening and structural reforms.
While many in the industry had hoped for targeted stamp duty relief to boost affordability, the absence of change ends the speculation that had weighed on transactions through the autumn.
Foxtons said the Budget’s revenue-raising measures – including higher taxes on property income, dividends and savings – provide households and investors with a more predictable planning environment.
BIGGEST IMPACT
The new surcharge on homes valued above £2 million, due to take effect in 2028, is expected to affect fewer than 1% of homeowners, though London and the South East will feel its impact most acutely.
The estate agency said that landlords had already begun adjusting to the regulatory shifts brought about by the Renters’ Rights Act and earlier legislative reforms.
Despite further tax pressure, Foxtons expects rental demand to continue to outstrip supply across the capital, supporting rising rents and stronger yields through 2026.
STAMP DUTY STABILITY
Although stamp duty reform did not feature in the Budget, the company said the stability of the policy backdrop would help the sales market regain momentum.
Transaction volumes, mortgage approvals and house prices have all strengthened gradually through 2025 and last week’s announcements are expected to draw a line under the pause in activity caused by Budget speculation.
Guy Gittins (main picture, inset), Chief Executive of Foxtons, says the statement “delivered much-needed clarity” after a period of heightened uncertainty: “With that uncertainty now lifted, we expect to see confidence return as households re-engage with their plans to move.
And he adds that the delayed implementation of the £2 million surcharge gives buyers and sellers “ample time to adjust and plan”.
IMPROVING AFFORDABILITY
Richard Merrett, Managing Director of Alexander Hall, the group’s mortgage advisory arm, says the most significant outcome for borrowers was the assurance of policy stability.
He points to widening income multiples, eased stress tests and a growing range of 95% loan-to-value products as evidence that lenders had been improving affordability conditions throughout the year.
He says: “If this stability continues, there is every reason to expect buyer momentum to build throughout 2026.”
Foxtons expects the clarity provided in the Budget to support a steadier, more confident market as the industry heads into the new year.
