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"The Budget has been a disaster for the mortgage market"

ended 13. November 2024

It's a fortnight since the Budget and brokers, financial advisers and property experts have shared their views on the impact on the mortgage and property market to date. One, Jack Tutton of SJ Mortgages, said simply: "The Budget has been a disaster for the mortgage market”. Another, Daniel Wiltshire, an IFA at Wiltshire Wealth, said: “The cult of buy-to-let is dead. I've had several meetings with would-be property investors who have decided to pull out and look at stocks and shares instead. The national psyche is hard-wired to pour money into bricks and mortar, but the recent increase in stamp duty, along with other incremental tax rises over the past 10 years, has made even the most die-hard property enthusiast question the wisdom of putting all their eggs in a single, highly taxed basket.” The views of six experts on the property and mortgage market fallout from the Budget are below.

6 responses from the Newspage community

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Jack Tutton
Director at SJ Mortgages
The Budget has been a disaster for the mortgage market. It came just when we were seeing the green shoots of recovery. The cost of borrowing has risen significantly for lenders compared to what it was before the Budget. This has given lenders little choice but to pass these increases on and raise mortgage rates. The key driver to these increases is the concerns around inflation: economists and markets believe that inflation may start to rise again and above the Bank of England target of 2%. The Chancellor's policies of increasing employers' national insurance contributions and the increase in the minimum wage are deemed to be the biggest concern. They will leave a lot of businesses little choice but to increase prices to help cover these additional costs. These increases are likely to push up inflation once they come into effect, which will mean interest rates staying higher for longer. This will be to the detriment of mortgage holders.
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Daniel Wiltshire
Actuary & IFA at Wiltshire Wealth
The cult of buy-to-let is dead. I've had several meetings with would-be property investors who have decided to pull out and look at stocks and shares instead. The national psyche is hard-wired to pour money into bricks and mortar, but the recent increase in stamp duty, along with other incremental tax rises over the past 10 years, has made even the most die-hard property enthusiast question the wisdom of putting all their eggs in a single, highly taxed basket.
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Zaid Patel
Director at Highcastle Estates
The Autumn Budget has really slowed down the property market. The day after the Budget, buyers wanted to renegotiate as some were paying up to £15,000 extra in stamp duty overnight and, due to that, six sales fell through for us alone. Smaller property investors have already listed their properties for sale, and we will continue to see this trend. The biggest winners are the institutional property investors. As for the rest of 2024, I’m not expecting a significant surge in activity. Many buyers will reflect over the end-of-year period and no doubt have fresh ideas on how they wish to navigate the latest roadblocks in the property market come 2025.
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Graham Cox
Director at Bridging Hub
Demand has slowed in recent weeks but how much of that is down to the Budget is hard to guage. It's a quiet time of year anyway. But my sense is people are adopting a wait and see approach. Not many properties are coming onto the market, and further base rate cuts are only expected next year now, not this.
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Iain Swatton
Director at Exemplar Financial Services
The Autumn Budget’s lead-up cast uncertainty over the property market, as concerns about inflation and economic measures impacted confidence. Pre-Budget, lenders raised rates, and inflationary concerns have since limited the Bank of England’s room for further rate cuts. The Budget also introduced higher stamp duty, adding costs but unlikely to deter those viewing property as a solid investment. The government’s intentions to expand housing are clear, but practical issues, like labour shortages, present challenges. Without a cohesive, actionable plan, market caution will likely persist into the coming months.
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Patricia McGirr
Founder at Repossession Rescue Network
Since the Budget, the property market has felt like it's stepped into a surreal episode of 'Waiting for Godot.' Buyers are hesitating and cautious, and who could blame them? They’re navigating a financial maze where every turn reveals another tax twist or interest rate rise. Deals aren’t just stalling, they’re playing a game of ‘will they, won’t they,’ leaving sellers in suspense and brokers pacing the floor. Cash, of course, is queen, and anyone relying on steady cashflow is making that their new religion. Solvency isn’t just a mantra, it’s a must-have. Expect the rest of 2024 to feel more like a calculated waltz than a high-energy sprint; the real winners will be those playing the long game and embracing creative financing. In the end, this year may not ‘fizzle out’ so much as simmer. The market’s waiting for a spark, but until then, everyone’s got one eye on their balance sheet and the other on any opportunity they can get their hands on.