Brits delay moving houses over Budget fears
Nearly one in five Brits considering moving house have stalled their plans ahead of the Budget, a new survey has indicated, in a fresh warning to the Treasury about the damage caused by leaks and speculation.
Around 17 per cent of potential movers surveyed by property website Rightmove said they have paused their plans to move house as a direct result of next week’s Budget.
Bleak survey data comes as Chancellor Rachel Reeves is preparing to unveil a mansion tax, which could involve a one per cent levy on homes worth over £2m.
She is urging MPs to pitch it as a measure targeting those with the “broadest shoulders”, according to reports.
But speculation around property tax reform risks stalling the house market as a whole, Rightmove’s survey of over 10,000 potential house movers has suggested.
The majority (61 per cent) of Brits said they were aware of the rumoured tax changes, and 79 per cent of these said this “concerned” them.
People in the South East and West of the country are most concerned (81 per cent) by possible tax changes.
Budget speculation hits housing market
The plans to introduce a council tax surcharge on high-value homes would disproportionately impact homeowners in London and the South East, Morning Wire has reported.
Brits aged 55 and over were most likely to say property tax reform concerned them (81 per cent), as analysts warn a mansion tax could constitute a “granny tax” because pensioners are more likely to own high-value properties.
Colleen Babcock, Rightmove’s property expert, said the number of Brits stalling home moves “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.”
While changes to capital gains tax had been discussed as an option for a mansion tax, Reeves has reportedly settled on a council tax surcharge on the most expensive properties.
Houses over a certain value, which could be set at £1.5m, would face an additional 1 per cent tax on the value above that level, meaning a home worth £2m would have to pay an extra £5,000 a year on top of its existing council tax.
Earlier this week, Rightmove said property prices are falling as a result of Budget speculation.
While prices usually drop around 1.1 per cent in November, asking prices fell by 1.8 per cent this year, the biggest drop since 2012.
A major housebuilder has warned the Government that a property tax raid could push up property prices and stall middle-class families on the housing ladder.