Welcome back to another week of Stentons Property blogs! Following on from my previous blog regarding the budget, I’ll be discussing how we expect the 2025 Budget to affect the UK property market.

Each year, Budget Day is a bit like weather forecasting for the property world. We look at the Chancellor’s statement and try to gauge which way the housing winds will blow. This year’s 2025 Budget has been no exception—with plenty of headline-grabbing pledges, but also some quieter policy shifts that could make a real difference on the ground.

Stamp Duty: A Missed Opportunity to Boost Momentum

Many were hoping for a revision to the stamp duty thresholds to help first-time buyers and stimulate movement in the mid-market. Unfortunately, this Budget kept things largely unchanged.

Without relief here, we may see continued stagnation at the middle tiers of the market—homeowners who want to upsize or downsize are still facing friction costs that discourage them from moving. So, in this area, the Budget arguably leaves the market a little colder than it could have been.

Support for First-Time Buyers: Warmer, But Not Sizzling

There was some good news in the form of renewed support for first-time buyers. The government announced a new shared ownership initiative and a modest expansion of the First Homes scheme. These efforts will help some get on the ladder, but as always, the success will come down to delivery and accessibility.

If you're a first-time buyer, this may feel like a step in the right direction—but don’t expect it to suddenly flood the market with new opportunities.

Build-to-Rent and Institutional Investment: The Heat Is On

One of the more telling parts of the Budget was the increased support and tax incentives for institutional investment in build-to-rent schemes. This signals a clear shift in government thinking: if small landlords are exiting, larger players are being invited in.

We may see higher-quality rental stock in urban areas—but also less diversity in landlords, and potentially more standardised (and less flexible) tenant experiences.

Planning and Infrastructure: Lukewarm Progress

The Budget includes further funding for planning reform and infrastructure delivery, which on paper sounds encouraging. However, we've seen these promises before, and progress has often been slow. Until local planning departments are properly resourced and empowered, the backlog of applications and delays will continue to drag on supply.

This keeps market supply constrained, which in turn sustains upward pressure on prices.

Verdict: A Budget That Keeps the Market on a Low Simmer

In short, this Budget is unlikely to produce a dramatic swing either way. It’s not a deep freeze, nor is it a sudden spike of heat. For homeowners, investors, and developers, the key takeaway is to continue making decisions based on fundamentals: location, demand, supply, and long-term sustainability.

We’re in a more stable (albeit cautious) phase of the market. And in many ways, that’s not a bad place to be.

If you’d like to unpack how this year’s Budget could affect your property plans or investments, contact us, and we’d be more than happy to help!

Until next time, happy house hunting!