One in five UK homeowners say the upcoming November Budget is causing them to pause plans to sell, amid fears over rising mortgage rates, stamp duty and potential tax changes.
The uncertainty comes as Chancellor Rachel Reeves prepares to deliver Labour’s first full Budget on 26 November, with expected announcements covering housing, taxation, and the wider economy.
Buyers and sellers are holding back, wary of reforms that could affect affordability, moving costs, and market stability.
New research from We Buy Any Home shows that 46% of homeowners concerned about affording a new property are delaying a sale because of Budget uncertainty, representing 21% of all UK homeowners surveyed. Meanwhile, 38% said they were particularly anxious about stamp duty costs on a new home.
HIDDEN COSTS
Other financial concerns are also weighing on potential movers. More than half (57%) fear hidden costs such as solicitors’ fees, surveys, and removals, while 53% cited interest rates and mortgage affordability as barriers.
A further 26% cited job security concerns in the current economic climate.
Elliot Castle, Chief Executive of We Buy Any Home, said the data reflected a market paralysed by uncertainty. “We’re seeing a perfect storm.
“People want to move – but they’re frozen by what the November Budget might bring.
“Will stamp duty go up? Will tax thresholds change? Will interest rates drop, or stay stuck? The lack of clarity is stalling the market.”
ANXIOUS TIMES
Homeowners in London, the East of England, and Wales showed the most anxiety about potential tax changes, while younger homeowners were more concerned about mortgage rates and job stability, with 68% of 45 to 54-year-olds fearing they could not afford a new mortgage.
Castle adds: “It’s like waiting for a traffic light that never turns green. People feel they can’t plan properly until they know what Rachel Reeves will announce. It’s understandable – no one wants to make the biggest financial decision of their lives in the dark.”
STAMP DUTY REFORMS
Housing experts are speculating that the Budget could include stamp duty reforms, adjustments to capital gains tax for second homes and investment properties, mortgage relief or homebuyer support, and new property taxes on landlords and second homes.
While some measures could offer relief, others risk hitting homeowners hard amid ongoing inflation and borrowing pressures.
“Even small tweaks to stamp duty or capital gains can have a huge ripple effect. Buyers get cold feet, sellers delay decisions – and the whole chain stalls,” Castle says.
“The Budget needs to bring clarity and confidence. Otherwise, we risk deepening the gridlock we’re already seeing in the property market.”
