The Chancellor’s March Budget traditionally sets the economic direction for the year ahead, with implications for property markets, taxation, and housing policy. While specific announcements remain unknown until Budget Day, understanding likely areas of focus helps homeowners, buyers, and sellers prepare strategically for Q2 and the remainder of 2026.

Potential property taxation adjustments

Following the Autumn 2025 Budget’s introduction of the mansion tax surcharge and property income tax increases, the March Budget may offer further clarification on implementation timelines or transitional arrangements. The government may refine existing measures or introduce supporting mechanisms to help property owners and landlords adapt.

Major new property taxes appear less likely, as governments typically allow markets time to absorb significant policy changes. Expect clarification and fine-tuning rather than entirely new taxation frameworks.

Mortgage market implications

Budget signals around inflation, growth, and fiscal stability indirectly influence mortgage markets. Lenders adjust products based on expectations for the Bank of England base rate, which responds to broader economic direction set out in the Budget.

Positive signals on inflation control and growth could support stable or easing interest rates through 2026. Conversely, inflationary concerns or fiscal surprises could place upward pressure on borrowing costs, affecting affordability for buyers and remortgage decisions for existing owners.

First-time buyer support schemes

The government continues to emphasise support for first-time buyers. The Budget may extend or modify existing schemes, allocate further funding to shared ownership, or introduce targeted adjustments to affordability initiatives.

Any changes are likely to take effect from April, influencing Q2 market activity. Expectations should remain realistic, as fiscal constraints limit the scope for large-scale new programmes.

Energy efficiency incentives

With tightening energy performance standards and ongoing environmental commitments, the Budget may announce grants, loans, or tax incentives for insulation, heating upgrades, or renewable energy installations.

Such measures could shape decisions for homeowners and landlords considering improvements before selling or as part of longer-term ownership strategies. Properties already meeting higher efficiency standards gain a competitive advantage.

Housing supply and planning reforms

Planning reform and housing supply targets may feature, influencing longer-term market confidence rather than immediate Q2 transactions. Measures encouraging development could reassure buyers concerned about affordability, while restrictive policies may raise concerns about future supply constraints.

Economic growth and confidence

Economic forecasts for growth, employment, and wages provide important context for property market sentiment. Strong projections typically support buyer confidence, while weaker outlooks can encourage caution and delay decisions.

Sellers considering Q2 marketing benefit from understanding this backdrop, as confidence levels often influence pricing strategies and buyer engagement during the spring market.

Council tax and local authority funding

Announcements around local authority funding may affect council tax levels and services. While indirect, these costs influence buyer calculations and homeowner satisfaction, particularly for higher-value properties affected by forthcoming surcharge measures.

Q2 market outlook

Assuming no major surprises, Q2 is expected to continue the steady conditions seen recently. Spring activity typically increases transaction volumes regardless of Budget specifics, driven by seasonal behaviour.

Realistically priced, well-presented properties should continue to attract buyers within reasonable timeframes, with regional variations reflecting local employment, infrastructure investment, and supply-demand balance.

Energy efficiency remains a key driver

Regardless of Budget detail, the shift toward higher energy standards continues. Buyers increasingly prioritise running costs, making efficient homes more attractive and often quicker to sell.

Planning strategically

Rather than waiting for Budget Day, focus on fundamentals. Understand your finances, research your local market, and base decisions on personal circumstances rather than political speculation.

While Budget announcements may influence short-term sentiment, longer-term property performance depends more on affordability, supply-demand dynamics, and economic stability.

Contact us for guidance grounded in market realities rather than speculation