Almost one in five would-be movers have put their plans on hold due to uncertainty over possible property tax changes in next week’s Budget, according to new research from Rightmove.
A survey of more than 10,000 people found widespread concern about possible changes to stamp duty, council tax and a possible new “mansion tax” on homes worth over £2 million – all measures that Chancellor Rachel Reeves is reportedly considering.
Rightmove said 61% of respondents were aware of rumors of impending tax changes, and almost 80% of that group feared the impact new levies could have on the property market. Concern was particularly high among those over 55, with 81% expressing concern, suggesting they are more likely to buy higher-quality homes that reforms could target.
Regionally, homeowners and buyers in the Southeast and Southwest were most concerned about possible new property taxes.
Colleen Babcock, property expert at Rightmove, said the uncertainty was clearly weighing on decisions: “We’ve heard directly from movers that this is denting their confidence. Some are choosing to wait until after the Budget to see how any political announcements affect their plans.”
Separate research by Rightmove found that the most popular idea for reforming stamp duty was to spread payments over a longer period, rather than requiring the full amount upfront. Other commonly suggested options included adjusting thresholds regionally and providing coverage for older homeowners or downsizers.
The concerns echo figures from the Office for National Statistics, which reported that year-on-year house price growth slowed to 2.6% in September, compared to 3.1% in August, as buyers delayed making decisions until after the Budget was published.
The biggest fall was in London, where average house prices fell 1.8% year-on-year to £556,000. Across the UK, prices rose slightly to an average of £272,000.
Tenants continue to be heavily impacted by rising costs, although the pace of increases is slowing. Average rents were 5% higher in October compared to last year, leaving the typical monthly payment at £1,360 – the slowest annual increase since August 2022.
