Fears of looming property tax changes in next week’s Budget have prompted thousands of would-be homebuyers to put their moving plans on hold, according to new research from Rightmove.
A survey of more than 10,000 people found that nearly one in five potential home movers have paused their plans due to concerns that Chancellor Rachel Reeves may introduce new housing-related taxes. Among those surveyed, 61% said they were aware of rumours around possible tax reforms, and almost 80% of this group said they were worried about the impact on the housing market.
Concern was particularly high among people aged 55 and over, with 81% reporting that they were anxious about changes — a group more likely to be buying at the higher end of the market, where any new levies such as a “mansion tax” would be more acutely felt. Regionally, homebuyers in the South East and South West expressed the greatest unease.
Reeves is expected to announce significant reforms to stamp duty and council tax, and has not ruled out additional measures affecting properties valued above £2 million. But the lack of clarity has already chilled buyer sentiment.
Rightmove property expert Colleen Babcock said uncertainty was undermining confidence: “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.”
Rightmove’s separate research found that buyers were most receptive to the idea of spreading stamp duty payments over time, with other suggestions including regional adjustments or protections for older homeowners seeking to downsize.
The nervousness around possible tax rises is beginning to show up in official data. The Office for National Statistics (ONS) reported that annual UK house price growth slowed to 2.6% in September, down from 3.1% in August, as uncertainty weakened demand.
London saw the sharpest contraction, with average prices falling 1.8% year-on-year to £556,000. Across the UK, average prices rose to £272,000, though this remains well below the peaks seen during the pandemic boom.
Renters continue to face intense pressure from rising costs. Average private rents increased 5% in the year to October, taking the average monthly payment to £1,360, though this marks the slowest annual rent inflation since August 2022.
Elsewhere, there are tentative signs that employers are becoming more confident. The Recruitment and Employment Confederation reported 754,359 new job adverts in October — up 2.1% from September — taking the total number of vacancies to more than 1.6 million.
CEO Neil Carberry said hiring confidence was “inching upwards” but warned that the recovery remained fragile.
Demand rose for roles such as medical radiographers, delivery drivers and further education teachers, while vacancies fell for vets, toolmakers and plasterers.
With the Budget just days away, analysts say buyer sentiment may remain subdued until Reeves clarifies the government’s property tax plans — a decision that could set the tone for the housing market throughout 2026.
