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Market Review Speculation over the delayed budget was extremely damaging to transactions above £1m in the UK, with transactional volume grinding to a halt. When the budget was released, it was in fact the dog that didn't bark (for property). What we got, to all intents and purposes, was higher council tax bands that will go to central government, not local councils, and will only come into effect in 2030, potentially raising £400m. Landlords were hit with further income tax on rents; the result will be simple: more will leave the sector, and rents will rise further. Is that really what Labour want? We didn't see a rewriting of the property tax, and sadly, no reduction in stamp duty on principal primary residences. I believe we are now entering perhaps the best ‘buyers’ market since 2008, particularly in the central locations of Mayfair, Belgravia & Knightsbridge, where buyers are more discretionary. Here we are seeing some properties trading below £1,400 per sq ft, cheaper than the majority of houses in prime Fulham. Recent data from Savills shows prime Central London prices remain 24.5% below 2014 levels in traditional prime postcodes (not allowing for inflation). Whilst no one is predicting the central London market racing away in 2026, there are reasons to feel positive for property in the year ahead. There is increased international interest (particularly dollar buyers), there is clarity on transactional tax (for now), and the cost of debt is coming down- the mortgage brokers we speak to are predicting fixed rate debt in the mid 3’s by Spring. Let's not kid ourselves with tongue-in-cheek comments of ‘missing the boat’, but I suspect we're lifting the window to a period of opportunity that we will look back on as ‘the time to buy’.
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