Advisers say the housing market needs stability, not political flip-flops, after Reform leader backtracks on stamp duty reform
Mortgage brokers have voiced frustration and concern following Nigel Farage’s decision to abandon Reform UK’s flagship tax-cutting promises, warning that the latest political reversal risks further undermining confidence in an already fragile housing market.
His announcement that major property tax cuts were “not realistic” follows Reform’s previous pledge to scrap stamp duty on homes under £750,000 - a move covered in Mortgage Introducer’s story Farage U-turn on tax pledges sparks housing market concern.
Gaurav Shukla of Home Me Mortgages said the announcement “highlights a wider issue - the housing market needs long-term stability, not short-term political promises.” He added that “frequent U-turns on tax and housing policy only add uncertainty for buyers, lenders, and brokers alike. We’ve already seen how affordability pressures, high living costs, and tighter lending criteria have slowed down activity, and now, with another party confirming reversal on stamp duty reform, confidence takes another hit.”
Shukla urged both government and opposition parties to “move beyond headline pledges and create a clear, consistent housing strategy that supports sustainable growth. Until then, buyers will remain cautious, and the market will continue to tread water instead of moving forward.”
While some advisers welcomed a more realistic tone, others warned that the lack of relief would prolong financial strain for landlords and tenants. Jeni Browne, director at Mortgage Finance Brokers, said she “welcomed this frank recognition that the public finances are stretched and that sweeping tax cuts may not be feasible.”
“Whilst we would all love to pay less tax, this just isn’t viable right now,” Browne said. “It’s also good to see Reform edge away from a populist policy and come closer to something more realistic. In terms of what this means for landlords, the absence of tax reductions means that affordability pressures will remain. For tenants, higher local taxes or unchanged property taxes squeeze household budgets, which raises the risk of arrears or longer void periods for landlords. Equally, first-time buyers may find affordability constraints continue, thus delaying purchasing plans further, meaning the supply-demand balance in the PRS will continue to be out of kilter.”
Across the UK, the slowdown has already been felt. Carolyn Dunion of McKendry Dunion said that “the usual uplift after the summer holidays didn’t materialise for many areas,” adding that “home buyers and sellers are lacking in confidence and perceive the cost of moving and buying to be prohibitive.” She believes the government “can and should do more to get the property market moving” but said that “headline-grabbing tax cuts are not the complete solution.”
For Kessar Salimi of Freedom Financial, the reversal was expected given the fiscal backdrop, but he warned of new risks if speculation over tax changes grows. “It’s not surprising considering the fiscal deficit,” he said, “but homeowners are worried about any increases in stamp duty which will prevent them from selling or could devalue their homes. All price ranges of the property ladder are vital to keep the flow of sales and purchases.”
With Reform UK stepping back from its bold tax-cutting rhetoric, brokers say the next priority must be restoring stability and clarity for borrowers. As Shukla put it, without consistency in policy, “the market will continue to tread water instead of moving forward.”
