Estate agents issue Rachel Reeves warning over property market | Personal Finance | Finance
Speculation that Rachel Reeves is plotting a shake-up of property taxes has spooked buyers and pushed the housing market into reverse, estate agents warn.
A survey by the Royal Institution of Chartered Surveyors (RICS) found agents are receiving fewer inquiries, completing fewer sales and reporting fresh falls in prices as nerves spread through the market.
Many blame recent reports that the Chancellor is considering scrapping stamp duty and council tax in favour of an annual property levy.
Ben Hudson, of Hudson Moody estate agents in York, said: “A lot of negative media around tax changes at the budget [is] making buyers nervous.”
David Boyden, of Boydens in Colchester, added: “[It] would be nice for the government to stop meddling and allow the market to settle.”
The RICS survey found a “further deterioration” in new buyer interest last month, with a net 17% of agents reporting a fall in August compared with July. Enquiries were down “in most parts of the UK”.
Sales also slipped, with a net 24% of agents completing fewer transactions. RICS warned that activity is likely to remain subdued at least until the Chancellor delivers her delayed autumn budget in late November.
At the same time, fewer homeowners are putting their properties on the market, with new instructions dropping for the first time since June 2024.
On prices, the RICS reported “a small degree of pressure” nationally, with a “noticeable decline” in East Anglia and the South West.
Northern Ireland remains the exception, with values there still “firmly on an upward trajectory”.
Tarrant Parsons, head of analysis at RICS, said: “With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty.
“Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time.”
The lack of affordable housing is also a major brake on activity. Barely 12% of homes for sale across Britain are priced below £150,000, according to Zoopla.
London is virtually closed off to first-time buyers, with only 2 per cent of properties below that threshold. Croydon is the lone exception, with 7 per cent of homes under £150,000 — though most are small flats.
By contrast, Sunderland and Aberdeen have the highest proportion of cheaper housing, with around half of all homes on the market at £150,000 or less. Blackpool, Darlington and Swansea are also among the most affordable hotspots.
Zoopla’s Daniel Copley said: “While an area like Croydon can offer a good entry point into the London market, it underscores how regional wealth disparities are reshaping the property landscape, pushing buyers to look further north for true affordability and a wider range of property types.”
