“John Healey’s maiden Budget has been far from a fiscal firework, instead economic prudence has won out over spectacle. That was perhaps unsurprising given the deliberate decision not to trail announcements ahead of the Budget, but the sheer weight of anticipation from businesses tells its own story: a reminder of just how fragile our economic confidence is, hanging on every word. This lack of foreshadowing also arguably left little space for showpieces and, ultimately, for everyone in property, this reduced room for manoeuvre has been a blessing. “No mention of a land tax, a wealth tax, no rises in CGT, and further Business Rates support announced, plus avoiding the disproportionate effect of lowering the thresholds of a mansion tax. Whilst broadly this has set the tone for a do-no-harm fiscal attitude to property tax, landlords will feel an underhand blow from the Chancellor today. Raising tax rates on income from property by a further two percentage points from April 2027 is a concern for small and accidental landlords whose margins have already been eroded this year, and we will undoubtedly see this impact in supply and rents over the next year. Conversely, the zero-rate on land sold to social housing providers announced will help incentivise the build and supply of council homes, a much-needed win for the struggling sector. “But if this Budget was all about avoiding disaster, this is not the same as success, however. With rumours swirling about a possible election, fiscal drag caused by doing nothing ahead of interest rate increases will continue to weigh heavily on any populist cost-of-living tinkers, with unyielding debt levels hitting both builders and buyers. America’s sneeze still becomes everyone else’s cold, exposing the fault lines in the global economy. This is all whilst borrowers race to beat the ‘rate rollercoaster’, as surging bond yields threaten deals agreed just a few months ago. Indeed, gilt yields are higher than they were at the time of the 2022 mini-Budget. But the only way forward is to break the low-growth cycle we’re in and focus on Britain’s strength sectors that underscore entrepreneurialism and technology development, from life sciences to law. “The OBR said building 1.5mn homes was one of the biggest pro-growth measures the government could do and that is highly unlikely to be reached. To be really pro-growth, we need more to support planning and reduce the regulatory burdens impacting developers. Whilst Your First Home may help boost demand, it does not solve the supply constraint caused by labour shortages and a glut of red tape. The Chancellor’s announcement to support entrepreneurs, back British businesses, and build on the already announced Job Plans are all commendable steps to help revive industry; however, they arguably do not go far enough for housebuilding. “For commercial property, supply and demand are still calling the shots, and several clients tell us certain sectors are thriving despite broader concerns about lower-grade retail and hospitality assets. The expected interest rate rise next week is largely priced into commercial real estate deals already, so it will be consumers on the front lines who will feel the shockwave. We saw this just last week as new analysis revealed lenders changed interest rates on mortgage deals on average every 16 days in 2026. And this week has raised the very real threat of negative equity, with Zoopla reporting 35% of homes are in areas experiencing price declines, up from 12% a year earlier. “The effect of devolution will be interesting to follow, including the £1.5bn in devolved loans allocated to mayoral authorities. Burnham has nailed his colours to the mast on the importance of empowering local authorities, but whether this will have the desired effect will depend on whether this power is used to build or to block. We must take care not to swim against the tide: technology, not least AI, is providing us with the tools to tackle problems at a much greater scale; moving to a patchwork system of local decision-making could backfire if a national strategy is not kept in mind. “Equally, just as the UK needs bigger bets on its own tech sector, empowering localism could make it harder to get the critical infrastructure off the ground. AI will create more winners and losers than any technology in living memory. The Chancellor’s has promised a ‘distinctively British’ approach to AI, but it will be his investment decisions towards AI sovereignty beyond what we’ve seen today may decide our fate.” 
Andrew Lloyd
, Managing Director at Search Acumen, says:
