Written by Dave Harris is CEO at later life lender, more2life
As the Chancellor prepares to deliver her 2025 Budget later this month, the conversation appears to be slowly shifting from “What will she do?” to “Who will pay for it?”. For advisers working with older homeowners, that question carries real significance.
Rachel Reeves has said this will be a Budget built around fairness, discipline, and fiscal responsibility – a recalibration of the tax system to reflect the realities of an ageing population and a slower economy therefore seems increasingly likely.
But behind those headlines sits a deeper issue for our sector: the growing likelihood that the family home will once again be placed firmly in the spotlight as both a source of revenue for the Treasury and, crucially, a financial lifeline for older clients.
Rumours swirling ahead of the Budget suggest HM Treasury is looking seriously at reforms to property taxation. One idea mooted has been the replacement of stamp duty with a new property tax, paid by sellers rather than buyers, and only on homes worth over £500,000.
Another is the long-mooted ‘mansion tax’ – an annual levy on higher-value homes, perhaps starting at £2 million. Both proposals are seen as ways to make the housing market more progressive and to raise additional revenue
Yet the implications for older homeowners – particularly those who are asset-rich but cash-poor – could be profound. A property tax paid on sale would make moving home less attractive, encouraging many older households to stay put for longer.
A recurring mansion tax, meanwhile, could place new financial pressure on those living in valuable homes but with modest retirement incomes. In both cases, the family home shifts from being a passive store of wealth to a more active financial instrument – something that must be managed, not simply owned. And when that happens, the conversation inevitably turns to later life lending.
At more2life, we’ve long argued advisers need to think differently about property wealth. The home is not just a place to live, it’s an asset and an increasingly integral part of a client’s long-term financial plan.
For many, it’s their largest single asset, often exceeding the value of their pension or investments. Yet too often it sits outside the advice conversation, considered only when all other options have been exhausted. That needs to change.
If this Budget does what many expect and places greater fiscal weight on property ownership, the need for proactive, informed conversations about housing wealth will become impossible to ignore.
For advisers, the message is clear: be prepared. The clients who may need guidance the most could be those who least expect it – retired homeowners who have always managed comfortably, who suddenly find themselves facing new costs or changes that affect their financial stability.
Whether it’s a property tax, a higher council tax banding, a shift in IHT priorities, or simply the ongoing drag of inflation eroding fixed incomes, more clients may start asking how they can make their homes work harder for them.
That’s where later life lending comes in. From drawdown lifetime mortgages and a range of other modern lending features to Interest Reward products, the market has evolved rapidly in recent years.
Today, advisers can access a wide range of solutions tailored to different affordability profiles, risk appetites and estate planning goals. But to do that effectively, advisers must start with one essential step: assessing affordability properly.
By taking the time to understand a client’s income, expenditure and future financial plans, advisers open the door to the full range of lending options available.
We see this as a vital part of delivering better outcomes under Consumer Duty. If advisers take the time to understand affordability, they secure opportunities for their clients to access more flexible, cost-effective solutions.
Equally, firms need a clear plan for how they handle later-life lending. Either they provide the advice themselves – with the right qualifications and permissions in place – or they establish a strong referral route to a trusted specialist. What matters most is that clients have access to the advice they need, when they need it.
As we approach the Budget, the current reality is that we don’t yet know what the Chancellor will announce. But, as a result of what is announced, it feels obvious that the family home for older homeowners is moving closer to the centre of the financial planning conversation – and advisers need to move with it.
Dave Harris is CEO at later life lender, more2life
