Stamp Duty under pressure

Only 12% of homebuyers and sellers want the current Stamp Duty system to remain unchanged, according to OnTheMarket’s latest Property Sentiment Index.

• 25% of respondents favour allowing buyers to spread payments over several years.
• 21% support introducing a new property tax on homes valued above £500,000.

The findings come amid speculation that Chancellor Rachel Reeves could use the Autumn Budget to replace Stamp Duty with a new national property tax on higher-value homes. Andrews Property Group has also called for reform, suggesting buyers should be able to pay Stamp Duty in instalments.

Market activity steady

The index shows property activity has remained resilient despite political and economic uncertainty:

• New listings rose by around 5% each month up to August, before a seasonal dip.
• Price reductions stabilised in August, with 11% of listings reduced, compared with 14% in July and June.

Confidence remains high:

• 80% of buyers believe they can raise the funds needed for their next purchase.
• 52% say they are very confident.
• 46% of buyers expect house prices to rise in the next year.
• 67% of renters expect rents to increase.

Most buyers and sellers expect to complete transactions within six months, while half of renters anticipate finding a property within three months.

Government housing targets doubted

Almost half (47%) of respondents said they believe the Government’s target of building 1.5 million new homes by 2029 will not be met.

Jason Tebb, president at OnTheMarket, commented:  “Despite a certain level of economic and political uncertainty, it’s encouraging to see that confidence among buyers, sellers and renters remains strong. Many property seekers are optimistic about their ability to move forward, whether buying, selling or renting, and are adapting to market conditions.

As we look ahead to the Autumn Budget, it’s clear that further clarity and stability from policymakers will be crucial in supporting the property market and allowing people to make informed decisions about their property journey.”