Back to newsNovember 2025 Budget
Real-World Implications for Property, Business and Lending.
The Budget’s impact on property, business, and lending is something many of our SME clients are thinking about. When our new Marketing Director, Jonathan, suggested I write a short article on this, I knew it was a good idea. As I began drafting it, I realised I was stepping out of my comfort zone. Writing from a non-political standpoint is a mighty challenge. After all, I am a middle-aged entrepreneur brought up in the Margaret Thatcher era. I belong to the generation where a 60-hour week is the norm. So here goes…
For context, we are a property-backed lender. We pride ourselves on a commercial approach and offer a face-to-face relationship that many SME business owners struggle to find elsewhere.
Overall, this Budget will have far less impact on business than the last one. It is unlikely to stifle investment. Entrepreneurs who stayed at the table after last year’s changes are unlikely to feel fazed now. The increase in dividend tax was expected and is far less painful than last year’s CGT increases. Hopefully, clients who paused decisions ahead of the Budget can now take the brakes off and move forward. We are here to help.
How will the Budget impact the property market?
Higher rental-related taxes mean landlords will feel the Budget’s impact on property, business, and lending when reviewing their portfolios. Successive Governments have reduced incentives to build property portfolios. Changes to the tax regime and amendments to renters’ rights have both played a role. Many landlords are now comparing BTL returns with other options.
Yesterday afternoon, I met a lady who is downsizing her portfolio. She plans to lend money to OSBF to achieve a better net return. Other options are, of course, available.
The property market has struggled for the past couple of years. Properties are taking longer to sell, and prices remain under pressure, especially where sellers need a quick transaction. Yesterday’s announcements did little to change that.
Our commercial approach means we can lend where others won’t. However, a price correction still feels likely. Borrowers should expect caution across the lending market. We will continue to support bridging clients with loan extensions where needed. Re-bridging away from lenders who are less inclined to help remains a core part of our business.
Impact on SME and B2B Clients
For our SME clients, the Budget’s impact on property, business, and lending may prove less severe than expected. However, careful planning remains essential.
We expect continued demand for working capital loans and our revolving credit facilities. We secure these against property assets. They offer a flexible funding solution at a lower cost than invoice finance. We regularly win work alongside or in place of invoice finance facilities.
B2C clients, particularly in hospitality, may feel the impact more directly. Consumers may reduce discretionary spending, and above-inflation increases to the minimum wage add pressure. As always, we will continue to support this sector.
Housebuilders and Development
I feel for our housebuilding clients. Material prices remain high following the Covid period. House prices are not helping margins, and land values have not corrected as expected. We still have appetite in this area. However, shifts in these factors mean deals that worked five to ten years ago no longer stack up. It is difficult to see how Government plans to build vast numbers of homes align with limited support for SME housebuilders.
Overall, we continue to support entrepreneurs with property security. We understand the Budget’s impact on property, business, and lending and provide flexible, commercial solutions. Rapidly growing and distressed businesses may be our speciality, but anyone with property security and a robust repayment plan is welcome. A clear repayment plan allows our responsible lending approach to thrive. Our flexible, human and commercial approach, with no tick boxes, remains different.
If you have questions about how this might impact your plans, we’re here to help. Get in touch today.
Andrew Mackenzie
Managing Director, One Stop Business Finance
