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Rumoured proposals for a national property tax on homes over £500,000 and increased landlord contributions are fuelling uncertainty in London’s already subdued housing market, potentially deepening regional divides and impacting market stability ahead of the Autumn Budget.
Rumoured changes to property taxation, anticipated in the upcoming Autumn Budget, have raised concerns about exacerbating pressures on the housing markets of London and the South East, areas already exhibiting subdued performance. According to Rightmove, speculation surrounds proposals that might include a national proportional property tax on homes valued over £500,000 and the introduction of national insurance contributions for landlords. These potential reforms come amidst an environment of cautious buyer and seller behaviour, particularly in higher-value brackets where market uncertainty tends to be more pronounced.
Rightmove’s property expert, Coleen Babcock, observed that rumoured tax changes “began swirling in mid-August,” and with the Budget expected several months later, this prolonged uncertainty may influence market decisions, particularly in London and the South East, where housing activity has been softer compared to other regions. The property portal’s analysis emphasises that nearly 60 percent of home sales in London would be affected if stamp duty were altered for homes over £500,000, compared to just 22 percent across England and as low as 8 percent in the North East. Furthermore, a “mansion tax” targeted at properties above £1.5 million would impact over one in ten London homes, contrasting starkly with the nationwide average of 2 percent.
In terms of pricing trends, the average asking price across Britain saw a modest monthly increase of 0.4 percent to £370,257 in September 2025, yet remains slightly below last year’s figures by 0.1 percent, largely due to weakness in London and the southern regions. Rightmove’s data indicates that the number of homes for sale in the South of England rose more sharply than in other parts of the UK, increasing competition and leading to longer selling times, with buyers taking an average of five days longer to secure properties. This competitive environment has encouraged sellers to adopt more sensible pricing strategies, helping sustain higher levels of sales agreed compared to the previous year.
Veteran estate agent Jeremy Leaf highlighted that while asking prices represent sellers’ initial expectations rather than final sale values, market realities show marginal price rises in more affordable areas but softening elsewhere. He warned of the risk that “unrealistic vendor ambitions” could hamper sales activity amidst a market where buyers have significant choice, urging sellers to price properties competitively to attract genuine offers.
Amid these dynamics, affordability remains a critical issue. Tomer Aboody, director of MT Finance, pointed to ongoing challenges for first-time buyers, citing that average property prices still outstrip typical income multiples, making entry into the housing market difficult. He stressed the need for stamp duty reform to stimulate market mobility, particularly encouraging downsizers to sell and freeing up homes for growing families and first-time buyers. Echoing this, industry reports note that the Bank of England’s recent interest rate cut to 4 percent—the lowest since March 2023—has provided some relief, though rates are expected to hold steady in the short term.
Government discussions on property tax reform extend to more significant structural changes. The UK Treasury is reportedly contemplating abolishing stamp duty on transactions and replacing it with an annual property tax for homes valued over £500,000. This proposed shift aims to enhance housing market fluidity by reducing upfront transaction costs, potentially helping to unlock economic growth. However, it also raises concerns about the financial burden on older, long-term homeowners, particularly pensioners in London and the South East, who might struggle with ongoing annual payments on their appreciated properties. Critics caution that without carefully designed safeguards, such reforms could disproportionately penalise certain demographics and inadvertently deter downsizing, thereby impeding market fluidity.
Adding to the complexity, the government is also considering levying national insurance contributions on landlords, which would further impact the property sector focused in the higher-priced regions of England and Wales. Chancellor Rachel Reeves is expected to unveil these proposals either at the scheduled Autumn Budget or a related fiscal event, with the aim of addressing regional disparities and possibly paving the way for localized property tax models to eventually replace council tax.
The backdrop to these potential tax changes includes shifts already underway in the housing market. Recent surveys reveal that asking prices, especially in southern England, have been more sensitive to tax-related anxieties, contributing to slower price growth. Meanwhile, rental markets are recording their slowest annual price increases in four years as greater rental supply and improving mortgage access for buyers ease demand pressures. Combined with economic uncertainties and stalled growth reported in mid-2025, these factors paint a nuanced picture of a market navigating both evolving fiscal policies and persistent affordability challenges.
As market participants await formal government announcements, experts urge buyers and sellers alike to remain vigilant, with the understanding that proposed tax reforms could reshape housing dynamics, potentially reinforcing existing regional divides while seeking to foster a more balanced and accessible property market.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent developments regarding proposed property tax reforms in the UK, with a publication date of 15 September 2025. Similar discussions have been reported in August 2025, notably by the Financial Times on 23 August 2025, highlighting the UK’s Treasury’s consideration of replacing stamp duty with an annual property tax for homes valued over £500,000. ([ft.com](https://www.ft.com/content/d050e2d9-d66a-4cf3-b692-0bc7c637f46a?utm_source=openai)) Additionally, MoneyWeek reported on 27 August 2025 about Zoopla’s findings that speculation regarding a new annual property tax is causing uncertainty among buyers. ([moneyweek.com](https://moneyweek.com/investments/house-prices/property-tax-speculation-uncertainty-zoopla?utm_source=openai)) The Daily Mail article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The narrative is based on a press release, which typically warrants a high freshness score. However, the presence of similar content in other reputable outlets within the past month suggests that the information is not entirely new. The Daily Mail’s focus on the impact in London and the South East aligns with previous reports but offers a more detailed analysis. The inclusion of updated data, such as the average asking price across Britain, adds freshness to the content. Nonetheless, the core information regarding proposed tax reforms and their potential impact on the housing market has been previously reported.
Quotes check
Score:
9
Notes:
The narrative includes direct quotes from Rightmove’s property expert, Coleen Babcock, and veteran estate agent Jeremy Leaf. A search for the earliest known usage of these quotes reveals that they have not been previously published in the same form, indicating originality. However, similar sentiments have been expressed by other experts in earlier reports, suggesting that while the quotes are original, the ideas they convey are not entirely new.
Source reliability
Score:
7
Notes:
The narrative originates from the Daily Mail, a reputable UK newspaper. However, the Daily Mail has faced criticism for sensationalism and inaccuracies in the past. The article cites data from Rightmove, a leading UK property portal, and includes expert opinions from industry professionals, which adds credibility. Nonetheless, the reliance on a single source for the primary information and the potential for bias in the reporting warrant a moderate reliability score.
Plausability check
Score:
8
Notes:
The claims regarding proposed property tax reforms and their potential impact on the housing market are plausible and align with ongoing discussions in the UK. The narrative provides specific data points, such as the average asking price across Britain and the percentage of homes in London affected by potential stamp duty changes, which are consistent with information from other reputable sources. The inclusion of expert opinions from Coleen Babcock and Jeremy Leaf adds depth to the analysis. However, the article’s tone is somewhat dramatic, and the structure includes excessive detail unrelated to the main claim, which could be seen as a distraction tactic.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent developments regarding proposed property tax reforms in the UK, with a publication date of 15 September 2025. While similar discussions have been reported in August 2025, the Daily Mail article offers updated data and expert opinions, adding freshness to the content. The quotes from Coleen Babcock and Jeremy Leaf are original, though similar sentiments have been expressed by other experts. The source, the Daily Mail, is reputable but has faced criticism for sensationalism in the past. The claims are plausible and align with ongoing discussions, but the article’s tone and structure raise some concerns. Given these factors, the overall assessment is ‘OPEN’ with a medium confidence level.
