With the Autumn Budget approaching, mortgage brokers say uncertainty over government housing and tax policy is the biggest external factor impacting homebuyers, research from Nottingham Building Society reveals.

The research shows that the concern now ranks ahead of interest rates, inflation and even the cost of living.

The survey of 500 UK mortgage brokers found that one in five (20%) view potential government policy changes as the single most important factor shaping client decisions in the year ahead.

By comparison, fewer brokers highlighted mortgage regulation and affordability rules (19%), energy and utility costs (19%) or interest rates (17%).

Even the cost of living, which has dominated household finances for much of the past few years, was ranked lower at just 14%.

This heightened concern comes as the Treasury is reported to be weighing sweeping reforms to the property tax system.

One option reportedly under consideration is spreading stamp duty payments over several years rather than as a lump sum, with the aim of reducing upfront costs for buyers.

Another proposal would see sellers take on liability above a £500,000 threshold.

Other suggestions include abolishing stamp duty altogether and replacing it with an annual property levy.

The society’s research shows that more than one in five brokers (22%) say clients with non-standard careers have had to jump through extra hoops to prove affordability, while 20% say first-time buyers now rely on outside financial support.

Against this backdrop, The Nottingham says uncertainty over future tax and housing policy risks compounding existing challenges and making it harder for clients to plan with confidence.

Meanwhile, one in four brokers (25%) want more product innovation to help a wider range of borrowers, while nearly as many (24%) are calling for better support for those struggling with repayments.

One in five (20%) want greater flexibility for vulnerable customers and those with adverse credit.

Nottingham Building Society chief lending officer Aaron Shinwell says: “Brokers are at the heart of the UK mortgage market, advising almost every homebuyer, so their insights give a real-time view of the challenges and decisions people face.”

“What’s clear, with the Budget approaching, is that sweeping changes introduced without careful planning risk creating more uncertainty and reducing market fluidity.”

“Any move to annual property taxes would need to be carefully managed to avoid disincentivising downsizing, reducing housing mobility, or creating unpredictable, ongoing costs for retirees and families.”

“These changes could particularly impact pensioners who are ‘asset rich but cash poor’, as well as regions such as London and the South East where a much higher proportion of properties fall above £500,000.”