The Chancellor’s 2026 Budget brought some relief to the prime property market, with no major new taxes on property, wealth or income announced. However, while the immediate outcome was less concerning than some had anticipated, questions remain about the Government’s longer-term approach.
Writing for PrimeResi in its review of industry reaction to the Budget, Mark Parkinson, Co-founder & Managing Director of Middleton Advisors, welcomed the absence of major new tax measures, while questioning what the Chancellor’s announcements – and omissions – might mean for the market.
“Today’s Budget brings relief and may boost market activity. This Budget announcement will, I think, be received with a bit of relief by our current and former clients.”
Mark also highlighted the significance of the measures that were not introduced:
“There are no major new taxes or increases in property taxes, or indeed wealth and income taxes. A 2% increase in property income tax is yet to be fully explained, but perhaps signals a direction of travel for the future.”
For Mark, the longer-term question is what the Government may have planned for property and wealth taxation.
“Maybe this will be more about what the Chancellor didn’t announce. While there have been a few incentives for growth, it leaves one wondering what they might do in the future around wealth and property taxes.”
He also pointed to the opportunity to do more to attract overseas investment into the UK:
“Little that affects prime property so far. It would have been nice to see some positive policy changes around attracting more foreign investment into the UK to help the wider economy. Hopefully, this will settle a few vendors’ nerves and lead to a bit more activity.”
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