With 2025 well underway, the UK property market is being shaped by political uncertainty. Labour’s first nine months in government have been marked by ambitious pledges, economic shifts, and declining public confidence. As a veteran in the UK property sector now actively acquiring businesses, I’ve seen first-hand how government policies ripple through the industry—sometimes subtly, sometimes with seismic impact.
If you own a small or medium-sized property business, these shifts could represent an unprecedented opportunity for you to exit on favourable terms. The combination of political uncertainty, economic policy changes and evolving investor sentiment has created a unique moment in which selling your company could be the smartest move.
When Labour took office in 2024, they made bold promises to revitalise the property market, particularly in housing supply and affordability. However, their tenure so far has been met with mounting criticism, as their approval ratings sink to new lows. Political instability always impacts business confidence, and many property business owners are beginning to question what the future holds for their firms.
One of the biggest issues affecting sentiment is Labour’s handling of economic policy. Chancellor Rachel Reeves’ first budget in autumn 2024 introduced measures aimed at boosting homeownership and increasing supply. However, these policies have yet to deliver clear benefits, and uncertainty continues to grip the market. For business owners, uncertainty often translates to risk—a compelling reason to consider selling while conditions are still favourable.
Labour’s flagship housing pledge—the promise to build 300,000 new affordable homes per year—was met with both optimism and scepticism. If achieved, this would significantly increase housing supply, potentially impacting property values and rental yields. If your business is reliant on property price stability or rental income, this could signal a shift in market dynamics that is worth your consideration before it fully takes effect.
Additionally, challenges such as planning regulations, supply chain disruptions and labour shortages continue to hinder large-scale development. If Labour fails to meet its housing targets, market volatility may increase, making it harder for property businesses to plan for the future. If you’re considering an exit, now may be the right time before further uncertainty sets in.
One of the more immediate effects of Labour’s declining popularity is the dent in market confidence. Historically, political and economic uncertainty dampens activity, and we’re already seeing signs of hesitation from buyers and investors. If this trend continues, business valuations could be impacted, making it crucial for sellers to act while demand remains strong.
At the same time, some acquirers—me included—are actively seeking well-run property businesses to integrate into larger portfolios. This means you still have the opportunity to secure a competitive deal from a serious buyer who understands the market and values long-term stability.
Labour has also set its sights on reforming the rental market, promising stronger protections for tenants and further regulation of landlords. While these measures may be well-intentioned, overregulation risks deterring landlords and reducing the supply of rental properties, which could drive rents up rather than making housing more affordable.
Additionally, proposed changes to capital gains tax and stamp duty for landlords are prompting some to reconsider their portfolios. If these reforms are implemented, landlords may find themselves facing shrinking margins and increased bureaucracy—another factor making now an opportune moment for you to sell.
For property business owners considering their next move, the current climate presents a compelling reason to act sooner rather than later. Political uncertainty, shifting market dynamics, and investor caution are creating an environment where selling can be a proactive, strategic decision rather than a forced one.
I know that if you’re contemplating an exit, you need a buyer who understands your industry, values what you’ve built and can ensure a smooth transition. I specialise in acquiring property businesses with professionalism and integrity, ensuring you—as a seller—can achieve the best possible outcome.
If you’re considering selling, now is the time to explore your options. Get in touch for a confidential discussion about how we can help you navigate this changing market and secure the right deal for your business.