Budget Speculation Damaging UK Property Market

Speculation around higher taxation announcements in the November Budget is already impacting the UK housing market, new data reveals.

Industry research confirms:

- New listings are down 6.1% in the second half of August compared to the first half, as sellers delay decisions ahead of the Autumn Budget;
- Withdrawals from the market are up by 23%, with the sharpest rise (+27%) among homes under £500,000;
- High-end activity rising: homes priced over £1.5m show a small uptick in listings, likely as sellers look to beat possible new capital gains tax or wealth taxes;
- Agent sentiment confirms a slowdown: nearly half of estate agents surveyed reported fewer listings, fewer buyers, or more sales falling through.

Tax rumours are multiple including replacing the main rate of Stamp Duty Land Tax (SDLT) with a national property tax paid by the seller on homes over £500,000; potentially a more proportional property tax linked to the value of the property; an annual property tax for homes over £500,000, either for all homes or only those transacting; council tax reform, potentially replaced by a local property tax paid by property owners, not residents; and removal of Private Residence Relief for Capital Gains Tax (CGT) on homes over £1.5m, affecting many properties.

There’s also a suggestion that a new mansion or wealth tax, which some think tanks have suggested, could raise revenues.