According to research from Rightmove, which studied around 10,000 people who are either actively in the process of moving home or considering moving, nearly two-thirds of homemovers were aware of rumoured property tax changes and nearly eight in 10 were concerned about them.
This echoes a recent poll conducted by Mortgage Solutions, which revealed that around two-thirds of brokers said buyers were delaying their purchase plans due to the Autumn Budget.
Some key measures suggested include reforms to council tax, an annual property tax to replace stamp duty, capital gains tax (CGT) on homes over £1.5m, the inclusion of National Insurance on rental income and cuts to cash ISA limits.
Rightmove noted that those aged 55 and over were most concerned about property tax changes, at 81%, which the firm said was possibly due to property tax reforms targeting the upper end of the market.
Regionally, approximately 81% of those in the South East and the same number in the South West were concerned about potential property taxes, possibly due to higher house prices in those regions.
Aldermore Insights with Jon Cooper: Edition 5 – Feeling enthusiastic about next year’s run-of-the-mill market
Sponsored by Aldermore
Colleen Babcock, Rightmove’s property expert said: “Our latest House Price Index showed how market activity is being affected by the various property tax rumours being discussed ahead of the Budget.
“Now, we’ve heard directly from homemovers 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.”
