As we move towards the next Budget - with the date now set in stone for the 26th November - advisers and clients are likely to be well aware of the speculation swirling around, particularly when it comes to property taxation.
Over the summer, headlines have ranged from the potential abolition of stamp duty to the introduction of new property sales taxes on higher-value homes. Whenever these kinds of rumours circulate, one thing tends to happen: uncertainty creeps into the market.
For residential purchasers, that uncertainty might be acute. If a buyer thinks the Chancellor may soon abolish a tax which adds thousands to their transaction, why push ahead now? The likelihood is some residential buyers will now sit back and wait, leaving sellers unsure how best to proceed. For advisers, this could translate into fewer enquiries from first-time buyers and home movers over the coming months as they adopt a ‘wait and see’ approach.
That behaviour creates challenges in the owner-occupier space, but equally it could create opportunities for landlords. It would appear that, unlike residential purchasers, landlords currently face fewer question marks. Which might be a new feeling for many.
While there has been some suggestion the Government may consider charging NI contributions on an individual’s rental income, there has been no serious indication stamp duty surcharges on additional property purchases will be touched. If the leaks are to be believed, those rules for landlords are unlikely to change come November.
That relative certainty means advisers can help landlord clients to move forward while others could be sitting back. With residential demand potentially dampened, landlords may find themselves in a stronger position to negotiate and secure property at attractive prices.
Sellers, particularly those with homes valued over £500,000 who fear a new sales tax, could be more motivated to transact before the Budget. Advisers who can prepare their clients to act quickly may well be enabling them to take advantage of a unique window in the market.
So, what does that preparation look like? This is where the advisory role becomes critical. Landlords may want to release equity through remortgaging or refinancing their portfolios to be acquisition-ready. That might mean reviewing existing products and weighing up whether the cost of ERCs is outweighed by the flexibility gained. It could also mean exploring refinancing options that free up capital but maintain sustainable cash flow, particularly in an environment where interest rates, while easing, remain above the historic lows landlords had grown used to.
Others may want to explore how they move individually-owned properties into a limited company structure - both to mitigate existing tax burdens and to future-proof their portfolios if NI charges on personal rental income are introduced.
And while much of the focus is rightly on the next three months, it’s also important to position your advice in the longer-term context. Incorporation, for example, is not just about immediate tax advantages but also about legacy planning and making portfolios more resilient to future changes.
Advisers can add real value here by helping clients understand the trade-offs: the extra compliance costs and potentially higher ones in running a limited company versus the long-term tax efficiencies and other advantages. These are complex decisions, and landlords will be looking for advisers who can give clear, tailored guidance rather than a one-size-fits-all answer.
They can provide landlords with clarity in uncertain times, helping them interpret what political speculation really means for their strategies. Many landlords will be watching the headlines and wondering whether to sit tight or act. Advisers are in a very strong position to give them the confidence to make the right call for their circumstances.
In the run-up to 26th November, it is very possible that some parts of the housing market will feel like they are in limbo. But for landlords, this may be exactly the moment to act.
By initiating the right conversations now, ensuring finance is structured appropriately, and positioning clients to take advantage of motivated sellers, real value can be added.
