Budget uncertainty forces home movers to pause plans, Rightmove finds

Nearly one in five would-be home movers have put their plans on hold amid uncertainty over potential property tax changes in next week’s Budget, according to new research from Rightmove.

A survey of more than 10,000 people has found widespread concern about potential changes to stamp duty, council tax and a potential new “mansion tax” on homes worth more than £2 million – all measures that councilor Rachel Reeves is said to be considering.

Rightmove said 61% of respondents were aware of rumors about upcoming tax changes, and nearly 80% of that group feared the impact the new charges might have on the housing market. Concern was particularly high among people over 55, with 81% expressing concerns, reflecting a greater likelihood of purchasing higher-value homes that could be targeted for repairs.

Regionally, homeowners and buyers in the Southeast and Southwest were most concerned about potential new property taxes.

Coleen Babcock, property expert at Rightmove, said uncertainty was clearly impacting decisions: “We’ve heard directly from home operators about how this is impacting their confidence. Some prefer to wait until after the Budget to see how any political announcements impact their plans.”

Separate Rightmove research found that the most popular idea for stamp duty reform is to spread out payments over time rather than requiring the full amount up front. Other frequently suggested options included adjusting thresholds at the regional level, providing protections for older homeowners, or downsizing.

These concerns reflect figures from the Office for National Statistics, which reported that house price growth slowed to 2.6% year-on-year in September, down from 3.1% in August, as buyers postponed their decisions until after the Budget.

London saw the biggest contraction, with average house prices falling by 1.8% to £556,000 compared to the previous year. Across the UK, prices rose modestly to an average of £272,000.

Tenants continue to be hit hard by rising costs, although the pace of increases has slowed. Average rents rose 5% in October compared to last year, bringing the typical monthly payment to £1,360 – the slowest annual rise since August 2022.