Critics argue that this hike in stamp duty on extra properties could lead to higher rental costs, as landlords may transfer the additional expense to tenants, especially given the limited rental housing supply. Ben Beadle of the National Residential Landlords Association emphasized that higher taxes could drive rents up, worsening housing affordability. Craig Fish from Lodestone Mortgages expressed concerns that these changes could disrupt ongoing property transactions and further limit housing availability.

Reeves’ budget did not extend the temporary stamp duty discount introduced in 2022, meaning buyers will face higher stamp duty costs from April 2024. According to Savills, the end of this discount could result in first-time buyers in London paying an additional £6,250, while average buyers across the UK could pay an extra £2,500.

The Labour Party’s stance on taxes for “working people” also sparked debate. Labour leader Sir Keir Starmer’s recent comments implied that individuals primarily earning from assets might not be classified as “working people,” leading to clarifications from Downing Street. The budget’s broader impacts include a £40 billion increase in taxes annually, which Reeves suggests may lead to businesses absorbing some costs through reduced profits, potentially limiting wage growth.