What Q4 means for borrowing, property, and policy

As we step into the final quarter of 2025, the UK property market is shifting. Interest rates are changing, the Autumn Budget is on the horizon, and many people are wondering: Is now the right time to buy, sell, or refinance?

While there’s plenty of speculation, our advice remains steady – stay focused on your long-term goals, stay informed, and be ready to adapt.

Interest rates

In September, the Bank of England held the base rate steady at 4%. That’s the lowest it’s been in over two years, following five cuts since last August as inflation began to ease. But we don’t expect any further changes just yet after Governor Andrew Bailey made it clear that any future cuts will be “gradual and careful.”

So, what does this mean for you?

• If you’re looking for stability, fixed-rate mortgages might be a good option in today’s still-uncertain climate.
• Cash buyers continue to have an edge, especially in areas where the market is moving more slowly.
• And if you’re considering refinancing, now’s a great time to start exploring your options with a lending specialist — before rates shift again.

What could the Autumn Budget bring?

The Autumn Budget, expected on 26 November, could introduce some important changes that impact property owners, buyers, and investors. While nothing is set in stone yet, here are a few things that are currently getting attention:

• Selling property: If you own a second home or investment property, keep an eye on Capital Gains Tax. The tax-free allowance has already been reduced, and further changes could increase what you owe when you sell.
• Passing on wealth: Inheritance Tax rules might be tightened, which could make it harder to gift property or money without triggering a tax liability. This could impact how families plan for the future.
• Buying homes: There’s talk of replacing stamp duty and council tax with a new annual tax on higher-value homes. Other views include spreading stamp duty payments over time or taxing main residences above a certain threshold.
• Rental property: Landlords may be required to pay National Insurance on rental income, which could reduce yields and impact how rental investments are managed.

These changes aren’t confirmed yet, but they’re worth watching out for. If you’re planning to buy, sell, or rent out property, now is a smart time to review your strategy and speak to your advisers.

What’s happening in the market?

The property market is showing a bit of everything right now. According to Halifax, house prices dipped by 0.4% in September, and annual growth slowed to 0.9%. But it’s not all doom and gloom — there are still plenty of bright spots:

• Prime locations, especially in London, continue to attract overseas buyers.
• Regional hotspots in the Midlands and North are seeing growth thanks to infrastructure investment and better affordability.
• Rental demand remains strong, with improving yields in urban areas.
• While some buyers and sellers are waiting to see what happens next, others are quietly making the most of current conditions.

Considering buying or selling?

When factors outside of your control keep changing, it’s important to have a clear plan. Here’s what we suggest:

• Don’t make decisions based on headlines alone. Property markets move in cycles, and short-term ups and downs often lead to long-term opportunities.
• Think about how property fits into your overall financial strategy, including tax planning, succession, and diversification.
• Be ready to reassess. If the Budget introduces changes, speak to your advisers to understand what it means for you and how to respond.

Q4 might bring a few surprises, but it’s also a great time to take stock and plan ahead. Whether you’re buying, selling, or simply reviewing your portfolio, a proactive and well-informed approach will help you make smart decisions in the months to come.

Tax rules are subject to change and taxation varies based on your individual circumstances. Nedbank Private Wealth does not provide tax advice.

Sources:

Bank of England – Monetary Policy Summary, September 2025
Financial Times – Autumn Budget 2025: What to Expect
Property Industry Eye – Industry Calls for Stamp Duty Reform
GOV.UK – Green Homes Incentives and Energy Efficiency Schemes
Halifax House Price Index – September 2025
Savills – Prime Central London Market Update
Rightmove – Regional Property Trends Q3 2025
Zoopla – Rental Market Report Autumn 2025