Andrew Lloyd, Managing Director at Search Acumen, comments on the Autumn Budget:

Andrew Lloyd , Managing Director at Search Acumen, says:

Property: Mansion Tax and increased tax on property income for landlords 

“The Chancellor’s decision to add a surcharge to higher council tax bands signals a desire to redistribute regional mobility and bridge the wealth divide, rather than create transactional peaks and troughs like a Stamp Duty change would have likely had. Whilst this will be difficult to implement, the three years until it comes into effect will allow careful planning if managed correctly. A fully digitalised Land Registry will certainly aid this process and support the monumental task of revaluations of hundreds of thousands of homes. The concern is how valuations will take place and how legally binding they may be. If we see higher value homes reduce in price over a sustained period of time between now and 2028, there is likely to be some pushback.

“Tinkering with property taxes was always going to divisive, but now that the Chancellor has made her choice, the priority must be stability. No U-turns, no prolonged uncertainty: give homeowners the confidence to plan their lives.

“For landlords, some will be hit twice in today’s Budget if stung by a council tax surcharge and an increase in property income tax. Some will have no choice but to exit the market entirely, reducing supply of the already squeezed private rental sector. Rents have increased nationally by about 36% since 2020, a figure that sits well above wage growth and has tightened the screws on the cost-of-living crisis. What’s more, the scarcity of rental homes will add further pressures to social care and social housing supply, with a housebuilding sector currently in turmoil. Our research shows that the gap between social housing availability versus the ballooning volume of the non-working population is the largest since 2019, widening 173% in 2024. This means that non-working people, or those between 16 and 64 who are economically inactive and often most in need of social care, are outnumbering new affordable and social housing numbers 12 to 1. Taxing landlords to the extent that they are forced to increase rents or leave the market paints a concerning future for the UK’s rental population.”

Business Rates: Multiplier confirmed 

“Whilst clarity on Business Rates multipliers will allow operators to move forward after a state of paralysis, those caught in the cross hairs who lobbied for an exemption will find themselves slumped with a calculator working out where to offset the surcharge. Passing on these costs to leaseholders, consumers or staff in any number of forms could spark concern, spook markets and harm investor appetite. We know from our own data analysis that rate reforms will disproportionately effect London where prices are highest, with over 6,100 properties liable to the surcharge. 70% of all of England’s offices spaces in the top multiplier are in London, higher than any other region. Tax increases to London businesses at a time of low-growth and persist inflation is questionable, after he OBR’s recent blow to the economy downgrading UK growth predictions for every year until 2030. We may see some businesses offloading larger premises that no longer justify the cost of holding them. That could accelerate the reshaping of our commercial property landscape, with mixed-use redevelopment opportunities emerging in places previously dominated by legacy footprints.

“Conversely, the confirmation of permanently lower multipliers for RHL properties with rateable values under £500,000 alongside transitional exemptions could stimulate pockets of growth and stabilise local markets through 2025 and beyond. However, these smaller gains need to be viewed with broader investor confidence in mind. Property transactions depend on confidence and clear signals from policymakers. Business rates may be an old tax, but today’s choices will have very modern consequences for liquidity, valuations and the pace of recovery across commercial real estate.”

Technology & AI

“This budget has felt like the most anticipated political move in years – a make or break for Starmer’s leadership. For industry, many have been hoping that economics would win out to politics, but the result has been a mixed bag. Whilst Reeves’ salami sliced Budget has seen a plethora of penny grabbing tactics, she has also underscored some solid commitments to science and infrastructure that have given her some runway.

“Notably lacking was any dominant mention of technology investment. This Budget was a chance to back the tech sector to promote UK growth and productivity, where an AI advantage would have certainly been a welcome tonic to markets after the OBR’s recent blow, downgrading UK growth predictions for every year until 2030. AI had the power to be her rabbit out of the hat moment. Businesses are ready to digitise at pace, knowing the gains available. We just needed the signal. Today, we didn’t get it.”

“What we can hope is that the small print will double down on AI Growth Zones, on the £2 billion AI Adoption Fund announced at the last spending review, alongside details behind the existing £3.25 billion Transformation Fund. With the government looking to productivity gains from technology within public services, this is an opportunity for AI startups to have the government as a first customer. Reducing back-office civil service costs via automation and AI is not just a way for the Chancellor to save money centrally; it supports the long-term infrastructure of the country, the protection of our data, and would finally put us on the front foot of productivity.

“In sectors like property and law, we know AI tools can eliminate weeks of paperwork and replace it with seconds of analysis. Looking at what Denmark and Australia are doing in digital property transactions, you can really see just how far we still need to go with our digital journey. With the right support, we could unlock billions in economic value simply by freeing professionals from manual tasks they shouldn’t still be doing in 2025. Using AI to support the digitisation of land systems, for example, could allow more transactions to complete per year, expediting land sales for housing delivery, and creating new jobs in the process.

“Looking ahead, if the government manages to get the balance right between investment in AI and its regulation, we should start seeing some really exciting milestones being reached in the coming years.”