Propertymark has identified Budget measures which didn’t attract headlines on Wednesday but may impact agency businesses.
The Writing Down Allowance (WDA) main rate will reduce from 18% to 14% starting from April 2026. This reduction in tax relief applies to both corporation tax paying companies and unincorporated businesses (sole traders) in the self-assessment regime for expenditures that do not qualify for full expensing, such as second-hand assets and cars.
The freeze on the employer National Insurance Contributions (NICs) secondary threshold (which applies above the lower earnings limit) was extended for a further three years until 2030-31.
From April 2029, salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from NICs. These contributions will become subject to both employer and employee NICs.
There will also be changes to business rates, providing lower multipliers for retail, hospitality, and leisure properties. It also includes a package of transitional relief intended to cap increases following the 2026 revaluation.
Additionally, agencies employing staff will be impacted by National Minimum Wage increases from April 2026:
- Over-21s: £12.71 per hour
- Ages 18–20: £10.85 per hour
- Under-18s and apprentices: £8 per hour.
However, when it comes to the high profile property tax changes announced by Chancellor Rachel Reeves, Propertymark remains bemused.
Policy and campaigns head Timothy Douglas says: “Many property agents and consumers will be left scratching their heads that, after months of speculation and the expectation of large-scale changes to Stamp Duty, nothing has materialised.
“All this speculation and uncertainty caused people to wait and see, which is not helpful for market activity and economic growth.
“A High Value Council Tax Surcharge [mansion tax] will disproportionally hit homeowners in London and the South East, which is already the most troubled part of our property market, and it will distort property valuations across the country.
“Furthermore, placing further financial pressures on landlords through increasing additional rates of property income tax will simply increase rents, as costs are passed on to tenants.
“Overall, with the UK Government’s ongoing target to build 1.5 million homes, and given their recent focus on home buying and selling, it is surprising that the UK Government’s Budget does not include a wide-ranging package of support for people to get onto or move up and down the property ladder.
“With an average deposit for first-time buyers currently sitting around £60,000, ultimately, this feels like a missed opportunity to support renters, home buyers and sellers and promote greater economic activity through the housing market.”
