October budget could boost property market – GetAgent

The Autumn budget could bring a boost to the property market, according to one estate agent.

According to estate agent comparison website GetAgent.co.uk, the property market has seen a recent uptick in activity, and a post-Budget boost could arrive in October, as buyer numbers have historically risen after the last nine budget statements.

GetAgent analysed the number of mortgage approvals seen over the two months prior and after the last ten budgets since March 2020 to see how the prospect of an impending budget impacts buyer activity across the property market.

Number of buyers entering the market increases following a budget

Following the Summer Statement in 2020, when the stamp duty holiday was announced to help boost the pandemic-stricken market, the number of mortgage approvals in the two months that followed increased by 259% versus the previous two months.

However, the mini-budget in October 2022 saw mortgage approval levels fall by -22.1% in the two months that followed compared to the two months leading up to it.

When considering the data from all of the previous ten budgets, the figures from GetAgent show that, on average, the number of buyers entering the market increases by 10.6% following a major budget.

Budget can be influential force in property market

Co-founder and CEO of GetAgent.co.uk, Colby Short, said: “The budget can be an incredibly influential force when it comes to property market momentum and there’s no clearer example of the impact it can have than the introduction of the stamp duty holiday and the shambolic Truss Mini Budget.

“Generally speaking, they tend to spur a post-Budget uplift in buyer activity and this has certainly been the case following the last three. It’s not always a case of positive property market initiatives driving this increase, it can simply be down to a wait-and-see mentality in the lead up, which then gives way to a business-as-usual approach from buyers.

“Top agents are often aware of these trends and will have these statements earmarked in their calendar in order to ride any immediate waves of positivity, or to negate any negative impact.”

Following the last three budgets, mortgage approval figures have increased, up by 19.6% following the 2023 March Budget, 16.4% following the Autumn Statement in November last year and by 4.6% after the Budget in March of this year.

On average, mortgage approval levels in the two months following the last three Budgets have increased by 12.6% versus the two months prior.

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