As the Autumn Budget approaches, the mortgage sector is clear that the Chancellor needs to do something bold to get Britain moving again. From stamp duty reform to digital transformation and skills investment, industry figures lay out a clear wish list for the Chancellor.
Stamp duty dominates the conversation, as Richard Sexton, commercial director of proptech surveyor portal Houzecheck, believes targeted relief is essential, stating: “Rachel Reeves could do us all a favour by reducing stamp duty rates for first-time buyers and all residential purchases below £500,000. Lowering a transaction tax like this would decrease upfront costs for buyers and stimulate demand, especially among younger first-time buyers.” He also backs “a temporary stamp duty holiday for properties under £750,000 for the next 12 months,” noting that “historically these boost market activity, just look at the impact this had in 2020 when buyers rushed to complete deals before the due date and sellers list more properties.”
Nick Jones, sales and marketing director at Access FS, wants the Chancellor to go much further: “If the Chancellor is looking to be truly ground-breaking, she could go one step further than Kemi Badenoch and ditch stamp duty altogether.” He describes it as “a regressive tax” that “hits hard when you are trying to relocate, so it’s a mobility tax, too, holding back growth.” Crucially, he adds, “let’s not forget that stamp duty hits tenants, too, how else do landlords recoup the money they spend on the surcharge but through higher rents?”
Acknowledging the Treasury’s coffers are empty, Jones suggests a revenue replacement: “It doesn’t seem crazy to refresh the valuations currently used as the basis for our council tax calculations. Council tax was introduced in 1991, and the property valuations used to determine how much each household in England pays have not been updated since. A revaluation of council tax could also provide a handy way for the state to rake in some extra revenue, with rises in how much tax is charged on each of the new bands, especially at the top end.”
Mel Spencer, growth director at Target Group, offers another option: “If she is feeling radical, she could do that by replacing council tax with an annual levy based on a proportion of the value of each home. This would be paid by the owner of the property, not necessarily the person who lives there. A tax on a percentage of the value of most homes with higher rates on more expensive properties could cover more than the existing council tax take.”
Beyond tax, many are urging investment in people and technology. Sexton calls for “a national AI skills academy with budget allocated for training tech professionals” and university partnerships to produce graduates with practical machine-learning skills. Spencer advocates for “streamlined global talent visas for AI and fintech specialists, allocate something like 5,000 slots annually for fast-track processing under three weeks” plus relocation grants and “regional innovation hubs – co-working spaces equipped for fintech-AI cross-pollination.”
Paul Albone, non-executive director at the OPDA, insists digital transformation of the transaction process itself must not be overlooked: “The housing market is vital to the UK economy, contributing around £100bn annually and employing 1.2m people. But the current system is broken. Transaction times have increased by 60% since 2007 and around 1 in 3 transactions fail, costing buyers and sellers around £400m per year in wasted costs.” He is urging the Chancellor to “incentivise investment in digital transformation” and back “a connected digital infrastructure underpinned by commonly adopted data formats and trust standards, like the Property Data Trust Framework developed by the OPDA.”
Matt Harrison, customer success director at Finova Broker, warns that any moves to drive up demand must be matched by increased capacity: “If Rachel Reeves delivers and activity suddenly increases, the sector may struggle to react. Any changes to taxation must go hand in hand with significant investment to radically overhaul the property transaction process. The government must back digital adoption and ensure a quick rollout to companies of all sizes.”
Nick Hale, the chief executive of Movera, echoes the call for sustainable rather than stop-start measures: “What we need are more first-time buyer incentives. But not temporary solutions that lead to booms and slumps. A considered approach that includes long-term measures, like providing the option to spread Stamp Duty payments over time- would deliver a clear and steady sense of direction to the sector.”
Perhaps the starkest warning comes from Damien Druce at Black & White Bridging: “Landlords are already leaving the sector in droves. Our data suggests 93,000 buy-to-let landlords will have left the rental market by the end of this year. Targeting the private rental sector will only cause more landlords to sell up, more people to struggle to find affordable rental accommodation, and more ageing properties to sit uninhabited and in desperate need of investment and redevelopment.”
With house prices still historically high and transaction volumes languishing, the message to Rachel Reeves is unambiguous: the housing market cannot wait another year for meaningful reform. The Budget is her chance to deliver lower upfront costs, fairer taxation, and a 21st-century transaction process, or risk presiding over further stagnation.
