With the dust settling after Chancellor Rachel Reeves’ delivery of the first Labour budget in 14 years, Will Watson, Head of The Buying Solution, assesses how prevailing uncertainty could create exceptional opportunities.

As buying agents operating in the prime property market, the recent UK budget has left many in our industry with mixed feelings. In the immediate aftermath, there was a collective sigh of relief – things could have been worse. But as we’ve had more time to comb through the details, it feels as though there is “small print within the small print.” This lingering uncertainty has put the market in a cautious holding pattern, and while this isn’t ideal, it has created unique buying opportunities for those who can see beyond the headlines.

The non-domicile (non-dom) status proposals, in particular, are keeping high-net-worth foreign individuals on edge. While the government hasn’t taken direct action yet, the signal is clear: more changes are likely coming. London remains a magnet for ultra-wealthy buyers from around the world, and I believe this budget cycle could amplify that. If overseas buyers feel the UK’s tax landscape could stabilise in their favour – through a simplified flat fee for non-doms of £200,000-£300,000, akin to Italy’s approach – we could see renewed international interest. Until then, however, many buyers are maintaining a wait-and-see approach, postponing significant moves until they feel the market is on more predictable ground.

Inheritance tax is another point of friction. With unused pensions now being moved into that scope and heirs being taxed 20% for anything over £1million, the potential tax bill on assets will be so steep – potentially nearly 70% once inheritance and income tax are factored in – that many are reconsidering how to structure their investments. Property has long been a stable asset to pass down to the next generation, and London real estate remains uniquely appealing – a tangible, culturally rich asset that no financial portfolio can replicate.

The high end of the market is ripe with good properties, but they aren’t all immaculate, turnkey homes. In fact, much of the super-prime stock requires significant work, which puts off many buyers seeking to move quickly. Renovation costs have soared by 30-40% in recent years, and planning permission is also more complex than it used to be. However, clients who are willing to take on these projects could see strong returns as the market recovers. Ironically, many buyers now want a “finished” home, but the reality is that most people end up making changes even when they buy something new. Taking on a project can mean a property truly designed to your taste, and in a quiet market you might secure it at a favourable price.

So, what does this all mean for buyers right now? In short, opportunity. The uncertainty around inheritance tax and non-dom status has slowed the market, giving buyers who are open-minded and flexible a distinct advantage. London remains a global city, highly desirable and underpinned by wealth and cultural appeal. And while prices are softer now, there’s no sense of panic. Those who own these properties often have the financial resilience to wait things out rather than sell at a discount. So, while the market may be stagnant for now, it is poised for a resurgence if economic or political conditions – both in the UK and overseas – shift favourably. London is very reactive, the market could turn around quickly, and those who bought in the current lull will look very prescient.

For now, the best advice for buyers is to stay flexible, think long-term and be ready to seize opportunity. London is, and will likely remain, one of the most desirable property markets globally. While it’s easy to get caught up in tax worries and policy shifts, prime property here isn’t just about financials – it’s about lifestyle, legacy and the enduring appeal of London itself. For those prepared to take a long view, this could be an exceptional time to buy into a city with a remarkable track record of resilience and growth.

Will Watson is Head of The Buying Solution

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