The chancellor has a £20bn hole to plug within the upcoming Funds. Studies recommend she gained’t elevate revenue tax charges, so the main focus has shifted to freezing or adjusting tax thresholds, which might elevate round £8bn.
That also leaves a number of billion to search out – and that is why property taxes have all of a sudden change into the topic of intense hypothesis. Rumours are already hitting the upper finish of the market
Discuss of property taxes has unsettled some consumers. Our knowledge exhibits that properties over £500,000 — a 3rd of all properties on the market, and much more in southern England — have seen fewer consumers, fewer gross sales agreed, fewer new listings
In the meantime, the mainstream market (beneath £500k) appears regular, as consumers there are much less frightened about adjustments.
Why stamp obligation retains developing
The business agrees that stamp obligation wants reform. Zoopla not too long ago informed MPs it needs to be abolished, however that might price £10bn a yr, so any massive adjustments would have to be paired with reform of council tax.
The burden isn’t evenly unfold:
● 70% of stamp obligation comes from properties over £500,000, principally in southern England
● 40% comes from the small variety of properties over £1m
● Nearly half is paid by individuals hit with the three% surcharge (second properties, landlords)
Stamp obligation impression on at this time’s consumers
Our knowledge on purchaser results in brokers reveals the place the burden falls essentially the most and the price
First-time consumers
● London: 75% pay stamp obligation (round £16,000 on common).
● Southern England: About half pay stamp obligation (round £5,000).
● Remainder of the UK: Fewer than 10% pay something.
Current householders
+ Over 90% pay stamp obligation in southern England, usually £10,000–£20,000.
+ Elsewhere, over half pay, however the typical invoice is far decrease (round £2,500).
Why stamp obligation feels outdated – what would assist consumers at this time?
Stamp obligation thresholds haven’t stored up with rising costs. In lots of southern cities – Studying, Aldershot, Southend, Bristol – consumers are paying as much as £10,000, or 2–2.5% of the property value, even for common properties.
A easy repair can be to boost the 5% stamp obligation threshold from £250,000 to £500,000.
This would cut back stamp obligation to 2% for properties below £500k and make shopping for extra inexpensive for typical consumers throughout southern England at modest price to the Exchequer.
Council Tax adjustments: what’s actually being mentioned
Council tax at the moment brings in £50bn a yr and helps pay for native providers. Payments range relying on the property band – a typical Band D dwelling pays about £1,668 a yr, whereas the most costly Band H properties pay twice that.
Some commentators have talked about doubling council tax for the highest bands (G and H). That might elevate round £4bn, however it will hit a small variety of house owners very onerous.
The extra reasonable thought being mentioned within the media is far smaller – elevating round £600m a yr from the ten% of properties within the prime bands (F, G and H).
This may imply:
+ As much as a ten% rise for these higher-band properties
+ Roughly £10–£30 further a month for affected house owners
+ Packaged politically as “higher-value properties paying extra tax”
The probably final result? Extra media bark than Funds chunk
Nothing is definite, however the proof suggests the Funds is unlikely to hit the property market as onerous because the headlines may recommend.
Gross sales exercise in 2025 has recovered to long-term norms, and brokers are heading into 2026 with robust pipelines price over £1bn in fee. The precedence for the federal government needs to be supporting this progress, not undermining it.
Richard Donnell, govt director, Zoopla.
