If you’re like us, the Autumn Budget probably came as a relief. After all the build-up and speculation, it didn’t deliver any major shocks - but that doesn’t mean there’s nothing to discuss. A few key policies stood out, and they’re ones that agents will want to keep on their radar.
From rising stamp duty to ambitious housing targets, we caught up with Richard Murray, CEO of Veco, to break down what these changes mean for the UK property market in 2025, and how letting agents can stay ahead of the curve.
Tackling Housing Stock to Better Serve Landlords
Q: What policies in the Autumn Budget will most impact letting agents in 2025?
“One of the most persistent challenges for letting agents has always been the same: where do I get stock from?” says Richard. “Labour’s target to build 1.5 million homes over the next parliamentary term, along with plans to redevelop brownfield sites, is a much-needed step toward solving this issue.”
The shortage of rental properties has driven up rents, increased competition, and made property management more complex for agents and landlords alike. However, recent government measures are set to alleviate some of this pressure.
Earlier in 2024, the government introduced a £3 billion guarantee scheme designed to make financing easier for Build-to-Rent developers and smaller property builders. The Autumn Budget added an extra £500 million to this initiative, creating further opportunities to expand housing stock and tackle supply shortages in the rental market.
If implemented effectively, these measures and Labour’s housing targets could greatly benefit landlords and letting agents:
More Property Options: With more homes on the market, agents can better match landlords with investment opportunities that suit their portfolios.
Pressure Off Rental Prices: Increased housing stock could help stabilise rents, creating a more predictable income stream for landlords and reducing vacancy periods.
Urban Renewal Opportunities: Brownfield site development will introduce new housing types, catering to a variety of tenants and helping landlords diversify.
Affordable, Energy-Efficient Housing: A Win-Win
Q: How will investment in affordable housing impact the market?
“There’s an urgent need for better social housing," says Richard. “Too many families are stuck in temporary accommodation, bouncing from one place to another. Stories of single parents moving repeatedly with kids, living in cramped one-bedroom bedsits – it’s tough to hear. Everyone deserves access to a safe, secure, and efficient home. That’s what’s driving the push for change.”
Labour’s focus on affordable, energy-efficient housing is encouraging. “Many people with lower incomes are hit the hardest by high energy costs, often stuck with uneconomical tariffs in poorly insulated homes,” continues Richard.
For letting agents and landlords, this commitment offers both practical and financial benefits:
Low-Maintenance: Modern properties are easier to manage, with fewer maintenance issues than older homes that have been renovated multiple times.
Energy Efficiency: With EPC standards tightening, newer builds are likely to meet or exceed the required ratings, helping agents and landlords stay compliant while offering tenants lower energy bills.
“By 2030, all properties will need to have an EPC rating of at least C,” Richard points out. “New homes built to higher standards today mean less work for landlords down the road, and happier tenants in the meantime.”
Stamp Duty Hikes: A Barrier for Landlords?
Q: How will the rise in stamp duty on second homes affect landlords?
The Autumn Budget raised Stamp Duty Land Tax (SDLT) on second homes from 3% to 5%, adding around £7,000 in extra costs on an averagely priced property. While this is aimed at promoting homeownership for first-time buyers, it’s likely to have a ripple effect on the rental market.
Reduced Portfolio Expansion: Higher entry costs could deter landlords from growing their portfolios, further tightening rental supply.
Short-Term Rental Struggles: The removal of tax relief on Furnished Holiday Lets (FHL) adds another layer of pressure, particularly for landlords relying on short-term rentals as a revenue stream.
Richard’s Advice for Letting Agents:
“With fewer new landlords entering the market, it’s more important than ever for letting agents to turn to technology, efficiencies, and automation to stay profitable,” Richard explains.
Richard recommends that letting agents:
Review Their Tech: Regularly update systems to ensure they’re operating at peak efficiency.
Automate Processes: Free up time for high-value tasks such as client relationship building.
Deliver ROI: Show landlords that you can maximise their returns while making their experience hassle-free.
“Landlords are going to want agents who can make their lives easier,” Richard explains. “A well-supported, tech-enabled agent becomes invaluable.”
Get Ahead with Veco Plus
With many changes ahead, the right tools can make all the difference. Veco Plus is designed to help letting agents stay efficient, competitive, and ready for anything.
From automating routine tasks to offering double-entry client accounting, Veco Plus gives you the edge to grow your portfolio, deliver results, and impress your clients.
Ready to supercharge your agency? Contact our team today at contact@veco.software to learn more about how Veco Plus can help grow your agency.
Trusted by over 2000 agency branches
#1 rated PropTech CRM on Kerfuffle.
