Speculation over property tax reforms in the upcoming Autumn Budget is prompting thousands of prospective buyers and sellers to put their plans on hold, according to new research from Rightmove.

In a survey of more than 10,000 people who were either moving home or considering a move, nearly one in five (17%) said they had paused their plans due to uncertainty about potential changes to property taxation.

Anxiety is widespread: 61% of respondents said they were aware of rumours around possible tax reforms, and of this group, nearly three-quarters (72%) said they were concerned.

ANXIOUS CONCERNS

Those aged 55 and over were the most anxious, with 81% expressing concern – a reflection of the fact that many of the mooted reforms, such as a mansion tax or adjustments to stamp duty, would disproportionately affect higher-value homes.

Regional differences were also marked. Home-movers in the South East and South West were the most likely to say they were concerned about potential tax changes (81% in each region), reflecting the greater prevalence of high-value properties in the south of England.

Property tax reform has been a persistent topic of discussion since August, with speculation ranging from a stamp duty overhaul and council tax restructuring to a possible levy on homes worth more than £2 million.

The uncertainty appears to be nudging some buyers and sellers towards caution as they wait for clarity from Chancellor Rachel Reeves.

STAMP DUTY

Rightmove’s in-house research panel also highlighted growing frustration with the existing stamp duty regime. One of the most common suggested reforms was the ability to spread stamp duty payments over time, while others called for regionally adjusted thresholds or specific protections for older movers and downsizers.

“I think most are now fed up with the rumours.”

Colleen Babcock (main picture, inset), 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 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.”

UNHELPFUL UNCERTAINTY

And she added: “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.”