Traditionally, the Budget is meant to provide clarity and direction, but the timing this year has had the opposite effect. For buyers and sellers alike, the decision to push it back to late November is only fuelling uncertainty.
Across the market, we are seeing two very different reactions. Some homeowners are rushing to complete sales before any announcements on tax changes, determined to avoid getting caught out. Others, meanwhile, are sitting firmly on the sidelines, waiting to see what the Chancellor will deliver before making their move. The result is a market split between urgency and paralysis.
The most concerning speculation is the prospect of Capital Gains Tax being applied to main residences. If introduced, this would effectively be a double blow when combined with the existing burden of stamp duty. For families considering downsizing, it could act as a deterrent, leading to reduced supply of larger homes and in turn driving up prices in already tight markets.
At the same time, whispers of a potential wealth tax are sparking further anxiety. Comparisons are being drawn with the impact of changes to the non-dom regime, which prompted a significant number of high-net-worth individuals to relocate outside the UK. If a similar trend emerges in the wider market, the long-term consequences for investment and confidence could be profound.
In the run-up to the Budget, speculation alone is proving to be disruptive. Transactions are being distorted, chains are under pressure, and families are left uncertain about how to plan their next steps. For many, it feels as though uncertainty has become the only constant in 2025.
What the property market needs most from this Budget is clarity and stability. While reform is sometimes necessary, constant shifts in taxation create volatility that benefits no one – not homeowners, not buyers, and not the wider economy. As the November deadline approaches, the hope is that the Chancellor will recognise the importance of giving people the confidence to move forward, rather than adding yet another layer of unpredictability.
If you're considering selling your home, now may be a prudent time to explore your options before any changes are introduced. In addition to offering a complimentary no-obligation market appraisal, our Surveying team can provide you with a formal RICS accredited valuation to support your tax planning.
Author:
Polly Ogden Duffy
Managing Director
Contact: [email protected]
