Uncertainty around the upcoming Budget Speech is impacting homebuyer activity, according to a survey from Nottingham Building Society.
A survey of 500 mortgage brokers, commissioned by the building society, found 20% cited potential government policy changes as the top factor shaping client decisions.
By comparison, fewer brokers highlighted mortgage regulation and affordability rules (19%), energy and utility costs (19%) or interest rates (17%). Even the cost of living, which has dominated household finances for the past few years, ranked lower at just 14%.
Broker responses suggest there is a greater need for clarity than ever. More than one in five (22%) brokers surveyed said that clients with non-standard careers have had to jump through extra hoops to prove affordability, while 20% say first-time buyers now rely on outside financial support.
According to Nottingham Building Society, against this backdrop, uncertainty over future tax and housing policy risks compounding existing challenges and making it harder for clients to plan with confidence.
The broker community is urging the industry to adapt. One in four (25%) want more product innovation to help a wider range of borrowers, while 24% are calling for better support for those struggling with repayments.
“What’s clear, with the budget approaching, is that sweeping changes introduced without careful planning risk creating more uncertainty and reducing market fluidity,” said Aaron Shinwell, chief lending officer at Nottingham Building Society.
“Any move to annual property taxes would need to be carefully managed to avoid disincentivising downsizing, reducing housing mobility, or creating unpredictable, ongoing costs for retirees and families.”
