On Friday the country awoke to the first change of governing party in nearly a decade and a half. The merits or otherwise of this political sea change are being endlessly debated on TV, radio and social media and will doubtless continue to be so for weeks, months or even years to come, but what does it mean in concrete terms for the UK property market and those working within it?
First Time Buyers Relief
Labour have already indicated that they will be reducing the FTB Stamp Duty relief brought in by the last government to its pre-mini budget level of £300,000 as of April 2025. Unwelcome news for those still struggling to get a toe on the property ladder, and likely to cause somewhat of a rush for First Time Buyers to ‘beat the deadline’, similar to what we witnessed when the covid-era SDLT ‘holiday’ came to an end.
Overseas Buyers
Labour’s manifesto indicated an additional 1% surcharge would be added to the existing 2% introduced by the previous government, following data indicating that, to date, the surcharge doesn’t seem to have slowed the foreign acquisition of UK properties. This was in line with noises made by the party since last year, and would seem to fit the expectations of new Chancellor Rachel Reeve. Once again, while it seems unlikely this sort of tinkering will have the long-term effect ostensibly hoped for, it’s likely to cause a rush in this area of the market as overseas investors look to avoid the hike before the deadline.
Mortgages
The biggest likely driver of change in the UK property market is mortgage rates. While inflation has been coming down, the BoE Base rate has stubbornly refused to shift so far. The markets will be impacted by the direction signalled by the incoming government in its opening weeks. If the base rate does finally go down, we are likely to see more volatility in mortgages. Lenders over the last twelve months have been regularly reviewing and shifting rates, prompting a mini rush of business for mortgage advisers and solicitors alike each time. In the febrile environment of a new government, expect this to continue.
Things Can Only Get…Busier?
As we can see, all signs point to business going up for conveyancers, and that means that anything your firm can do to make things smoother and more efficient for fee earners and clients will be welcome.
We already provide lawyers with the market-leading Compass Concierge software, allowing them to outsource SDLT calculation and responsibility and ensure that neither they nor their clients are caught out by any nasty Stamp Duty Surprises. This bespoke, fully customisable solution ensures that your firm gets the right answer on Stamp Duty first time, every time, and that your client pays exactly what they owe, no more, no less. One simple subscription, one comprehensive solution.
Now we are ready to make everyone’s lives even easier, with the introduction of Compass Gateway, our new B2C service designed to educate clients about the realities of SDLT and prepare them for the Compass Journey.
At no cost to your firm, Gateway acts as a ‘jumping on point’ for clients with regards to property tax. Designed to deal with SDLT, LTT and LBTT, Gateway ensures that any client buying property anywhere in the UK will come to you better informed and aware of the importance of getting a proper calculation done, and the potentially huge false economy of not doing so.
It will also ensure that your firm has one fewer item to educate buyers on, in what’s likely to be a busy time over the next twelve months at least.
This article was submitted to be published by Compass as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
