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Demand for £500k-plus homes is falling amid Budget speculation?

ended 26. September 2025

Request from the Mail:

Is it possible to please get some comments from experts on why demand among buyers for £500,000-plus homes is falling amid Budget property tax speculation? Listings in this price bracket are also falling.

Responses ASAP please.

8 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
The stock is there but buyers are holding back until Rachel Reeves unveils her ransom note in the autumn, or rather winter, Budget. Talk of mansion taxes and a potential property tax replacing stamp duty land tax is paralysing confidence. The market hates uncertainty and right now it’s drowning in it.
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Jack Tutton
Director at SJ Mortgages
The uncertainty around the Chancellor's plans to introduce a further tax to people who own a property above £500,000 will have a significant impact to both the housing and mortgage market. The demand for properties above this amount will significantly reduce between now and the Budget, which will continue should she decide to apply this additional tax. However, the demand for properties under this will see a surge and could result in people willing to go well over asking price in order to prevent paying this potential additional tax. If the Chancellor introduces this additional property tax, this will also have implications to people's borrowing capability as lenders will have to factor this into their affordability calculations.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Confidence is running on fumes right now. Leaks and rumours have not helped and many would-be buyers and sellers are unsurprisingly battening down the hatches until they know what they're dealing with. With the public finances in tatters, the Autumn Budget could be brutal. Bricks and mortar is suffering as a result.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
We may be seeing house prices reaching a ceiling at this level as affordability becomes too stretched. The budget speculation around new property taxes doesn't help, especially as we don't know what the chancellor will actually do. This lack of confidence could make this a quieter winter than usual for property sales.
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Babek Ismayil
CEO at homebuying platform OneDome
People are genuinely concerned about the changes that may be announced in the Budget, especially those with a higher net worth. Many people considering buying more expensive properties are worried about increased taxation, which could pile further pressure on their finances. A large mortgage may be manageable but if they are suddenly hit with extra tax, in whatever form, that could potentially stretch them. People understandably appear to be sitting tight for now. The property market lives on confidence and if people don't feel confident about what's coming, they will press the pause button.
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Chris Barry
Director at Thomas Legal
We have seen a worrying uptick in the number of buyers above £1m who are deciding to withdraw from their purchase using negative press surrounding the upcoming budget as their excuse not to commit

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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Demand for £500k+ houses has evaporated because potential purchasers refuse to commit substantial capital when the Chancellor might unveil punitive measures targeting higher value homes through council tax revaluations, annual property taxes, or enhanced stamp duty rates. Meanwhile, vendors are withdrawing listings rather than accept reduced prices in a market paralysed by fiscal uncertainty.

The speculation around property tax reforms has created a perfect storm of transaction paralysis in the prime market segments. Buyers earning £100,000-plus face the prospect of losing personal allowances, child benefits, and pension contribution limits while simultaneously facing potential property tax increases on homes they cannot yet afford.

This toxic combination of Labour's income tax drag and property tax speculation has destroyed confidence among precisely the demographic that drives activity in higher value segments.
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Patricia McGirr
Founder at Repossession Rescue Network
The spectre of new taxes and uncertainties in the economy is forcing would-be buyers to sit tight and causing sellers to postpone planned sales. Swingeing changes mooted by the Government has dented confidence all round and I suspect we will see more of the same to continue into the New Year.