Talk of sweeping property tax hikes in the Budget has paralysed the homes market. Last week TV host Kirstie Allsopp warned the property market was now ‘dead’ ahead of Rachel Reeves’s speech on November 26.
Those trying to sell homes might agree. One London estate agent said a fifth of its buyers pulled out of purchases when speculation over taxes emerged in late August.
The Chancellor is rumoured to be considering plans to scrap stamp duty in favour of an annual tax for homes above £500,000, as well as charging those who own homes worth £1.5million or more capital gains tax if they sell and make a profit.
Ms Reeves is also said to be plotting possible changes to council tax and forcing landlords to pay National Insurance on the money they make from rent.
The rumours have led to a four per cent drop in buyer enquiries for homes worth £500,000 or more in the past month, compared with the same period in 2024, says Zoopla.
One London estate agent said a fifth of its buyers pulled out of purchases when speculation over taxes emerged in late August, writes ED MAGNUS
What can sellers do?
Sellers face a choice between waiting in hope of an acceptable offer, slashing the price to secure a sale or taking their home off the market to return post-Budget.
Amy Reynolds, of Richmond, south west London, estate agent Antony Roberts, says: ‘If similar properties that are slightly cheaper are selling, then a price reduction will work.
‘If nothing is selling and it’s a cautious area, coming off the market and making home improvements to benefit the sale next time is advisable.’
So how much should you cut the price?
While some buyers may be happy to wait, others will have a pressing need to sell – maybe because of a job relocation, expecting a new arrival or having made an offer on their next home.
More than two-thirds of homes that sold this summer went for less than their initial price, says London estate agent Hamptons.
Ms Reynolds says: ‘If it’s a terraced house and others in the area are selling, the price needs to come down to the right level in that area – it could be two per cent off or 10 per cent off your price.’
Property expert Phil Spencer adds: ‘It’s human nature to regard your home as better than comparable places for sale. But listing your home at slightly less than competitors can make it stand out and yield you the viewings.’
How you can pick the right buyer
Rachel Reeves is due to deliver her highly anticipated Budget on November 26
If your heart is set on moving soon, consider not only the price a buyer is offering but also how likely they are to go through with the deal.
Mr Spencer says: ‘If you receive several offers, be strategic with which one you choose.
‘Look for buyers who are chain-free or under time pressure – and always pick someone who is “proceedable”.
‘This is estate agent jargon for a buyer who has all their financial ducks in a row and is committed and serious.’ In England and Wales, buyers can pull out right up until contracts are exchanged.
If not now, when should you sell?
The Budget is a late one and will be followed by the property market’s Christmas lull. November and December are the worst months to sell, says Rightmove.
Ms Reynolds advises staying on the market until the end of October, as buyers often look to make offers around this time if they want to be in their new home before Christmas.
If it doesn’t happen and you have no pressing need to move, it may be worth your while taking your home off the market and returning in February or March.
Rightmove says these are the best months to put a property on the market, and after the Budget there may be many buyers looking to return.
Ms Reynolds adds: ‘We know buyers are waiting for the Budget and we know it isn’t a sellers’ market. The catch is the market may worsen before it gets better, so you may need to play a long game.’
What to do while you wait to sell
If you decide to wait until next year to sell, you can use the time to make your home the best it can be and get ahead of the competition.Ms Reynolds advises using the time to ‘declutter, decorate and plant flowers for spring’.
Make sure photos of your home are taken before Christmas decorations are up and wintry weather sets in, or they’re taken after the festivities – as you don’t want them to give away that you have been trying to sell for a while.
Angela Kerr, director at property advice website HomeOwners Alliance, suggests using the time to maximise ‘kerb appeal’.
‘The most important features are well-maintained windows and a roof that appears in good condition,’ she says. ‘A well-maintained front garden, pathways, fences and a well-painted frontage are also important.’
What if you are a chain-free buyer?
For those who don’t need to sell in order to buy, the advice is to be brave and get stuck in.
‘Many are doing very little, waiting for the Budget to see what doom and gloom is on the horizon,’ says Ms Reynolds.
‘No one knows what future Budgets will bring so my view is if you have the money and can afford to move now, and would like to, then buy now when you are less likely to be competing for a property.
‘If it’s a buyers’ market, which it is, buy now.’
However, Mr Spencer says buyers shouldn’t rush into any decisions. ‘When there are more homes for sale than there are buyers, the buyers can afford to take their time, be choosy and negotiate hard on price,’ he says.