Adam Challis, Global Director - Strategic Insights at JLL, said:
 

"After the noise of recent weeks, the Chancellor delivered balance that should reassure bond markets and provide a degree of certainty for the real estate industry. The sector can get behind Budget spending commitments to make good on the UK's growth potential. Key to unlocking this growth remains improving planning capacity and regional investment, which both saw further government commitment, and creating an environment in which businesses can succeed. Support for retail and hospitality, along with policies to reduce regulation for small businesses should be welcomed in the pursuit of economic growth.

"The global race for innovation-led growth needs ambition and clear government commitment. There was some welcome news around this with policies around skills, entrepreneurship and innovation. If it can deliver on its plans, the UK economy is well-placed to compete for global talent and investment.

“The economic geography of real estate is changing. Interventions to boost the core sectors at the heart of the industrial strategy will support future demand for real estate across the whole of the UK. At the same time a clear plan for public infrastructure and connectivity not only will benefit major cities in driving local growth but will create opportunities for private capital to fill in the gaps.”

Peter Fullam, Head of Rating UK Regions at JLL, said:
 

“The budget has delivered the much anticipated five business rates multipliers, introduced as an attempt to rebalance online retail versus the high streets.

"Clearly the introduction of a higher multiplier adds further financial burden to many ratepayers, but it is a relief that the larger multiplier will only be 2.8p. Legislation allowed for up to a full 10p to be added and the uncertainty caused significant concern. Confirmation of the higher multiplier now provides the financial certainty that ratepayers need, albeit this will be applied across all ratepayers that fall in scope, despite calls from various sectors to be excluded.

"The permanent Retail, Leisure and Hospitality multiplier discounts of 5p and 10p, dependent on the size of Rateable Value is a positive move. However, these represent discounts of between broadly 10% and 20% compared to existing retail reliefs which is 40% up until the end of March 2026, and 75% in recent years. Therefore, whilst permanently reduced multipliers are welcome, for many smaller ratepayers who have benefited from RHL relief this represent a comparative increase in liability. It will be of benefit to those retailers with larger portfolios who are far less reliant on previous relief schemes and hit cash caps quickly. We are very pleased the Government maintained the Film Studio relief at 40% discount.

"All eyes now move to the 2026 Revaluation Draft List. This has now been released, so ratepayers can finally accurately budget the cost of business rates from 1st April 2026.”

Marcus Dixon, Head of UK Living and Residential Research at JLL, said:
 

“The greatest value this Budget was always going to deliver was clarity. Months of speculation has slowed activity, meaning simply knowing what is and is not changing could well provide hesitant buyers and sellers with the confidence to re-enter the market in the new year.

“There were, however, clear (and missed) chances to go further in supporting transactions and unlocking much-needed development. Reforming taxes such as stamp duty, which continues to hold up the market by discouraging people from moving, would have made a meaningful difference. In its proposed form, the introduction of the High Value Council Tax Surcharge of between £2,500 and £7,500 per annum from 2028 is perhaps the least painful of the mansion tax proposals mooted in the run-up but still targets a sector of the market which has seen continued hikes in taxations and stagnation in prices over the past decade. We still expect clarity around cost and timescales will result in a rise in buyer activity in the new year but simply layering further costs on the top end does little to address the pressure point of affordability for first-time buyers. Targeted support at the entry level would have made a far greater difference to market mobility, particularly with the OBR acknowledging they expect further falls in housing net additions through to 2027. Increases in tax rates on landlords’ rental income also risk further exacerbating the supply demand imbalance within the private rented market, as landlords, already feeling the pressure from higher taxes and changing regulation may choose to exit rather than swallow additional cost – all of which means less supply and the prospect of higher rents.

“Now, with the Budget behind us and a year until the next fiscal event, greater certainty should help the market start moving again. But in order to meet the government’s goal of building 1.5 million homes we’ll need to see more on increasing delivery, improving viability, and demonstrating clear and sustained demand for new homes across all sectors of the UK housing market.”