"There are new factors to consider, like the added stamp duty tax band, but the fundamentals of property investment remain solid. For many, it’s time to press forward."
For months, property investors have felt like they were in a holding pattern, waiting for clarity around the Budget. And who could blame them? When talk of potential tax changes is in the air, hitting pause makes sense. From seasoned portfolio landlords to those just starting out, many chose to sit tight.
The run-up was filled with speculation, with fears of capital gains tax hikes leading the conversation. A survey by Benham and Reeves found nearly 20% of landlords put their plans on hold, bracing for what might come. Thankfully, those fears didn’t materialise, and now, with the Budget behind us, we can see the road ahead more clearly.
There are new factors to consider, like the added stamp duty tax band, but the fundamentals of property investment remain solid. For many, it’s time to press forward.
Demand still outpaces supply
The basics haven’t changed: demand continues to outstrip supply. Propertymark’s latest figures reveal that the average estate agency branch has 48 properties for sale - a two-year high. But here’s the key point: those branches are juggling an average of 71 buyers.
The rental market tells an even starker story, with prospective renters far outnumbering available properties. This ongoing imbalance continues to push property prices and rental incomes upward, creating opportunities for investors who know how to navigate it.
Government plans for new housing and planning reforms are a step in the right direction but won’t shift the landscape overnight. For now, the current market dynamics still favour strategic investors.
Adapting, not exiting
There’s been plenty of talk about landlords walking away from the market, driven by tax changes and regulatory hurdles. The Budget only added fuel to that fire, with many waiting to see if more challenges would land. But the reality is more nuanced.
We’re not seeing a mass exodus; instead, we’re seeing a strategic shift. Investors aren’t leaving - they’re adapting. Traditional residential rentals are being reconsidered in favour of higher-yield, more resilient investments like HMOs and semi-commercial properties.
Why the shift? Because these investments offer built-in resilience. In an HMO, if one tenant moves out, income from others keeps cash flow steady. Semi-commercial properties provide a similar buffer, combining the stability of commercial leases with residential demand. It’s a smart pivot that ensures consistent returns, even in changing market conditions.
Looking ahead with confidence
Now that Budget uncertainty is behind us, investors who pressed pause can start planning their next move. While there are new tax considerations, property remains a dependable asset class for those ready to adapt and get creative.
This is also a prime moment for brokers to collaborate with lenders who truly understand the specialist market. The right lender is more than a funding source - they’re a partner who knows the complexities, offers flexible support, and makes a real difference. For those looking into HMOs or semi-commercial opportunities, having that expertise at your side is invaluable.
In the end, the fundamentals still stand strong: demand is high, supply is limited, and for those ready to seize the moment, the opportunities are there. With the Budget now settled, it’s time to look ahead and move forward.
