Deciding whether to invest in property now or hold until the October Budget is the single most common dilemma for investors in 2025. Rates have moved, market activity is changing, and the government’s fiscal choices could alter tax rules and housing incentives. This guide gives a clear, practical framework so you can make an evidence-based decision that fits your situation, not a one-size-fits-all answer.

Current macro picture you must know

The Bank of England reduced the Base Rate to 4.00% in August 2025 after a 0.25 percentage point cut. That change influences mortgage pricing and market sentiment for buy-to-let and owner-occupier purchases.

House prices remain mixed across the UK. Official data shows moderate annual house price growth nationally, while listing activity and asking prices have softened in recent weeks, increasing buying opportunities for investors who have cash or mortgage approval.

Rental growth has cooled from its peak. Industry reports show annual rental growth for new lets at a lower rate than seen in prior years, but rents are still above pre-pandemic levels in many cities. That supports steady rental income even as capital values adjust.

Why these facts matter to the question “should I invest in property now”
If you are thinking should I invest in property now, here are the three most important facts: mortgage pricing is still materially above the historical norm; rental demand is solid, but rental growth has slowed; and property prices show regional variation with some sellers lowering asking prices to stimulate sales. Those three factors combine to make timing a tactical choice rather than a strategic one.

What the October Budget could change (and how to treat the risk)

The Autumn Budget is traditionally delivered in late October or early November. The government has signalled fiscal pressures that could lead to tax changes, including targeted property taxes, though no official measures are confirmed. Expect announcements on taxation or reliefs that could affect investor returns. Do not assume the Budget will damage every investment; often measures are narrow and aimed at specific owner groups.

How to treat Budget uncertainty when deciding whether to invest in property now:

  1. Assume finely tuned policy changes rather than sweeping bans.
  2. Focus on local market fundamentals you can control: location, tenant demand, lease length and property quality.
  3. If you fear tax changes, model gross and net returns both with and without worst-case tax scenarios.

Mortgage market and timing advice you can use today

Mortgage rates follow Bank Rate but include lender margins and risk premia. Brokers report two-year fixes becoming competitive compared with five-year fixes. If you plan to buy with a mortgage and want certainty, securing a rate now on a purchase agreed offer may be the prudent move. If you can buy with cash or a high deposit, you have more optionality to wait for potential rate cuts later in the year.

If your question is simply “should I invest in property now to lock yields,” the practical answer is to get mortgage in principle and then chase the right asset rather than pushing a purchase through at the wrong price.

Cash buyer or high net worth investor
If you can buy with minimal financing, your main decision is market price versus opportunity cost. With some asking prices being reduced and rental yields remaining solid, many cash buyers will benefit from acting now to secure units at attractive yields. Model worst-case short-term price moves but remember that cash secures immediate options.

Mortgaged buyer needing financing
If you require a mortgage, getting an agreement in principle and fixing early can protect you from short-term rate volatility, especially if you target a purchase before any market reaction to the Budget. Alternatively, if you want to speculate on significant rate cuts before the end of the year, remember markets now price only limited cuts; the BoE may wait if inflation remains sticky.

Buy-to-let landlord focused on income
For income-first investors, rental demand and yield are the priority. Rental growth has slowed but remains positive in many areas, so securing a property that meets tenant demand and offers immediate yield is usually preferable to delaying for policy noise. Target neighbourhoods with proven tenant demand and low void risk.

Risk checklist before you commit to invest in property now

  • Confirm financing options and stress test the cashflow at higher rates.
  • Check local rental demand using Rightmove, Zoopla and industry reports.
  • Model post-tax returns under different Budget scenarios.
  • Plan for at least a 12 month holding period to ride out short-term market movement.
  • Factor in landlord regulation and compliance costs that can change with government policy.

Decision framework: simple and practical

Answer these in order:

  1. Do I have finance agreed or access to cash? Yes: proceed to step 2. No: secure finance first.
  2. Does the property meet local tenant demand and yield expectations? Yes: proceed to negotiation. No: do not buy.
  3. Can I absorb a 10 to 15 percent short-term price movement if market volatility increases after the Budget? Yes: proceed. No: wait and strengthen liquidity.

If you can answer yes to all three, the evidence favours acting now rather than waiting. If not, do the work now and be ready to move quickly if a good opportunity appears before or after the Budget.

If you can secure finance and the asset meets your income and location tests, you should generally invest in property now rather than wait for the Budget. The Budget may shift a few rules, but local fundamentals and rental demand determine returns over a five to ten year hold period. If you lack financing or clarity on tenant demand, prepare now and move fast when the right property appears.

Conclusion
Timing matters, but fundamentals matter more. For most serious investors with finance in place and clear area research, the balance of evidence supports acting rather than waiting for the Budget. If you want a tailored assessment of whether to invest in property now given your financing, tax status and risk appetite, contact TK Property Group and we will run a practical, no-nonsense feasibility and cashflow test for your target investment.