UK House Prices Show Slower Growth Amid Calls for Property Tax Overhaul
The UK housing market is showing signs of cooling. Recent figures reveal that house price growth has slowed, raising questions about the impact of potential tax reforms.
According to Nationwide Building Society, the average UK home price rose by 2.1% in the year to the end of August, down from 2.4% in July. This marks the slowest pace of growth since July 2024. The current average home now costs £271,079.
Experts suggest the slowdown coincides with growing speculation over a shake-up of the property tax system. Reports indicate the government is weighing major changes to stamp duty, council tax, and capital gains tax, alongside a possible National Insurance levy for landlords.
Robert Gardner, chief economist at Nationwide, told the BBC: “It’s definitely worth looking at UK property taxes.”
He added that the UK needs a system that “allows people to move more effectively”.
UK house prices in surprise fall amid high mortgage costs pic.twitter.com/x7sAZDbn4V
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Among the options under discussion are:
- Abolition of stamp duty
- Replacement of council tax with a national property tax
- Removal of capital gains tax relief on high-value home sales
- Introduction of a National Insurance levy for landlords
The proposed reforms have divided opinion. Some economists argue scrapping stamp duty could revive market activity, while critics warn it could cost billions in lost revenue.
Despite the slowdown, affordability remains a pressing issue. Gardner commented: “House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.”
The figures highlight a persistent challenge for many aspiring homeowners: the gap between salaries and property prices continues to strain the market, even as growth cools.
UK house prices are slowing, but high costs and potential tax reforms are keeping the market in focus. Buyers and policymakers alike are watching closely.
