Buyers and sellers await clarity on tax changes in next week’s Budget
Uncertainty surrounding possible property tax reforms in the forthcoming Autumn Budget is prompting a significant number of prospective buyers and sellers to delay their plans, according to new research from Rightmove.
A survey conducted by the property platform, involving more than 10,000 individuals either moving or considering a move, revealed that 17% have put their plans on hold due to concerns about potential changes to property taxes.
The study also found that 61% of respondents were aware of speculation regarding tax reforms, with 79% of this group expressing concern.
Older homeowners, particularly those aged 55 and above, were most likely to report unease, with 81% indicating apprehension. This demographic is especially exposed, as many of the rumoured reforms are expected to impact higher-value properties.
Regional analysis showed that respondents in the South East and South West were equally likely—at 81%—to be worried, reflecting the concentration of higher-priced homes in these areas.
Discussions about possible changes to property taxation have been ongoing since August. Proposals under consideration include a revision of the stamp duty regime, adjustments to council tax, and the introduction of a mansion tax on properties valued above £2 million.
Feedback from Rightmove’s internal research panel highlighted a preference among participants for reforms that would allow stamp duty payments to be spread over time. Other commonly suggested changes included regionally adjusted thresholds and measures to support older homeowners and those looking to downsize.
“Our latest House Price Index showed how market activity is being affected by the various property tax rumours being discussed ahead of the Budget,” said Colleen Babcock (pictured right), property expert at Rightmove. “Now, we’ve heard directly from home movers about how it’s denting their confidence, with some preferring to wait until after the Budget to see how any policy announcements affect their plans.
“While most movers are carrying on as normal, it demonstrates how unhelpful the uncertainty over potentially costly changes can be. I think most are now fed up with the rumours and would like to see the final contents of the Budget and assess how they’re impacted.”
According to Mary-Lou Press, president of trade body NAEA Propertymark, home movers pausing their plans due to tax changes rumours is a clear sign that confidence is fragile.
“A slowdown in activity from even a small proportion of buyers and sellers can reduce choice in the market and lengthen transaction times,” she said. “This can create a ripple effect, especially for chains relying on downsizers or those selling homes at the upper end.
“In the current climate, consumers benefit from taking advice early, understanding all their potential costs, and keeping in close contact with their agent. Market conditions remain varied across the country, and well-priced, well-presented homes are still attracting interest. For those ready to move, there continue to be good opportunities, but this report highlights why clear information and timely guidance are more important than ever.”
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