Our panel of luxury property leaders urges the Chancellor to ease the tax burden on residential transactions, and to make Britain a more hospitable place for international investors & HNWIs.
Chancellor Rachel Reeves is due to present the annual Spring Forecast and economic statement later this week (on 26th March). This is not supposed to be a full “fiscal event” like the Autumn Budget, but Treasury sources recently warned that “the world has changed” in the last six months – implying the Spring Statement may be more than an economic sit-rep. Tax changes and policy shifts are very possible.
So we asked leaders in the prime property sector what they most hope Reeves will announce on the 26th, and what they most fear will come to pass:
- What measures could the Chancellor announce in a Spring Forecast Statement that would bolster the property market?
- Which policies could (or already are) doing most damage to the high-value residential property sector?
Our panel – which includes estate agents, buying agents, developers, designers and mortgage brokers – is not optimistic. Given the bleak wider economic landscape, not-great news on the geopolitical front, warning noises about public sector over-spending, and a left-leaning government – the likelihood of any announcement in favour of luxury homes is slim.
As is now tradition, Stamp Duty reform tops many property pros’ wishlists. Simon Barry of Harrods Estates says “the current regime creates an artificial market where both buyers and sellers are penalised for wanting to move or invest.” Buying agency boss Camilla Dell argues changes to the SDLT regime since 2014 have been “like pouring glue into the London property market”, and advocates for a return to the pre-George Osborne “slab” structure.
Stamp Duty cuts are unlikely, admits Robin Edwards of Curetons, but “even the hint of an easing or targeted relief for specific groups, such as first-time buyers and downsizers, could inject some much-needed momentum into the market.”
Other key concerns include ongoing fallout from the abolition of Non-Dom tax breaks, “unintended consequences” of the Renters’ Rights Bill, and the possibility of hikes to Capital Gains Tax or even the introduction of a new mansion tax or wealth tax targeting the super-rich.
More positive notes focus on the potential for effective reform of Council Tax – balancing the levy so more affluent areas and higher-value homes pay a fairer share, and the potential to remove or reduce VAT on some construction and home renovations – which Harrods’ Barry argues would be “a game-changer” for the property market.
There’s also an underlying cheerfulness about the relative stability of the current UK government, at least when compared to all the goings-on of recent years.
Overall, prime resi movers and shakers would like to see lower taxes and more encouragement for – rather than deterrents to – inward international investment. Becky Fatemi of Sotheby’s International Realty UK sums up the mood: “The worst thing Reeves could do right now is double down on punitive taxes that push wealth out of London”.
Talking Heads: Luxury property leaders’ Spring Budget wishes & fears
Revert to the pre-2014 slab system of Stamp Duty
– Camilla Dell, Managing Director at Black Brick
“Unfortunately, our ‘wish list’ for what we think should happen to the property market is unlikely to be fulfilled, but if we had a magic wand…
- Stamp Duty: By far the biggest cost that a buyer incurs. When George Osbourne changed Stamp Duty rates in 2014, he changed the market forever. Those changes and indeed subsequent changes have been like pouring glue into the London property market. Transactions are fewer and people have no incentive to move. I would reverse Osbourne’s changes and revert to the old slab system with a top rate of 7% (and 3% extra for overseas buyers or second homes).
- Reform Council Tax: Considering the above, I would then change the way council tax is charged, ensuring more affluent areas and expensive homes pay more and that these funds can be used to help fund wider public services in the borough.
- Renters Reform: again, something that is being brought in, without any thought of unintended consequences. Landlords now have no security of tenure, with tenants being able to serve notice at any time which may push even more Landlords to sell, and reduce rental supply further, thereby harming the very people the government is trying to protect.
“Along with stamp duty, changes to the UK Res Non-Dom tax regime are by far the most harmful to the Prime Central London property market. We have taken calls from several clients all selling up due to Non Dom changes as they do not wish their entire estate to be drawn into UK IHT. A much smarter move would have been to keep the regime intact and instead charge a much bigger annual fee for Non Dom’s to retain their tax status.”
If the property market comes out of the Spring Statement relatively unscathed, demand should build over the year as buyers adapt to the new lending landscape
– Tom Bill, head of UK residential research at Knight Frank
“The government wants to boost tax revenue and encourage economic growth but its new rules for non doms risk doing neither. A tweak to the legislation around inheritance tax and overseas trusts would notably lower the number of foreign investors leaving the UK, but political ideology has so far trumped economic pragmatism. The government has also not been swayed by arguments in favour of an Italian-style flat tax to make the UK more competitive on the international stage.
“The inflationary impact of policies like higher employer national insurance contributions and minimum wage rises is a risk for the UK housing market. If inflation stays higher for longer, that will keep upwards pressure on mortgage rates. However, if the property market comes out of the Spring Statement relatively unscathed, demand should build over the year as buyers adapt to the new lending landscape.”
The worst thing Reeves could do right now is double down on punitive taxes that push wealth out of London
Becky Fatemi, Executive Partner at Sotheby’s International Realty UK
Wish: “London has lost too many of its UHNW residents, and it’s time to bring them back. The Spring Budget needs to send a clear message: London is open for business again. We should be rolling out the red carpet with policies that make it worth staying – like a more competitive non-dom tax regime, a longer tax exemption period for new arrivals, or incentives that encourage investment in UK businesses rather than pushing money offshore. The wealthy have choices, and right now, they’re choosing Dubai, Monaco, or Italy. If we want London to remain the world’s capital of opportunity, we need to stop pushing people away and start making them feel welcome again.”
Nightmare: “The worst thing Reeves could do right now is double down on punitive taxes that push wealth out of London. The city thrives because it attracts visionaries – entrepreneurs, investors, creatives—people who drive innovation and fuel our economy. If the Spring Budget brings more tax hikes – like higher Capital Gains Tax, an extended wealth tax, or even harsher inheritance tax rules on UK property – those people will simply take their wealth elsewhere. We’ve already seen international buyers turn away due to increased stamp duty and the non-dom crackdown. If the government keeps making London an expensive place to succeed, we risk turning it into a playground for tourists rather than a global hub for wealth, business, and culture.”
Adjustments to Stamp Duty could significantly enhance market fluidity, especially at the higher end
– Craig Tonkin, Regional Sales Director at Hamptons London
“As we approach the Spring Forecast, the property market, particularly in Prime Central London, is poised for potential shifts. While we hope for measures that could invigorate the sector, there are also concerns about policies that might dampen growth.
“In terms of hopes, it would be fantastic to think there might be some sort of stamp duty reform as adjustments here could significantly enhance market fluidity, especially at the higher end, by reducing barriers for both domestic and international buyers. We’re also keen to see a clear, long-term tax strategy that avoids sudden policy changes, providing the stability that investors and homeowners crave.
“However, there are apprehensions too. Any increase in Capital Gains Tax on property sales could stifle transactions and discourage investment, potentially deterring international clients from the London market. Similarly, the introduction of a mansion tax or further restrictions on non-dom buyers could push high-net-worth individuals to seek opportunities elsewhere, slowing the prime market considerably.
“Ultimately, while the Chancellor’s announcements are crucial, the most significant boost to the market in the short term would likely come from a reduction in interest rates. This, of course, falls outside the scope of the budget but remains a key factor in market dynamics.”
Zero-rated VAT on building work and refurbishments for second-hand homes would be a game-changer for the property market
– Simon Barry, Head of New Developments at Harrods Estates
Wish: “Our biggest wish would be for Reeves to reduce SDLT to a level which reflects the reality of property values in London and the South East. The current regime creates an artificial market where both buyers and sellers are penalised for wanting to move or invest.
“In addition, zero-rated VAT on building work and refurbishments for second-hand homes would be a game-changer for the property market. It would encourage investment in existing housing stock, driving sales, revitalising older properties, and embedding sustainability into the industry in a truly meaningful way. Instead of demolishing and rebuilding, homeowners and developers would be incentivised to restore, enhance, and future-proof Britain’s homes – delivering both economic and environmental benefits.”
Nightmare: “Conversely, an increase in Capital Gains Tax (CGT) on second homes and investment properties would risk stifling market activity. Faced with higher tax burdens, many sellers would simply hold onto their properties, further restricting supply and pushing prices even higher. At a time when we need to encourage greater fluidity in the market, additional CGT increases could have the opposite effect, limiting opportunities for buyers and reducing overall transaction levels.”
A change to Stamp Duty for downsizers would get the entire market moving
– Nina Harrison, London Specialist at Haringtons UK
Wish: “My biggest ask would be for Reeves to slash Stamp Duty for downsizers. There are thousands of older homeowners rattling around in houses far too big for them, desperate to move but trapped by eye-watering tax bills. Free them up, and suddenly, family homes start flowing through the market again. Chains speed up, sales rise, and the Treasury still rakes in tax from all the extra transactions. A change to Stamp Duty for downsizers would get the entire market moving.”
Nightmare: “The nightmare would be making it even harder and more expensive to employ people. Businesses are already drowning in costs, and every new tax or regulation just pushes them closer to the edge. If Reeves really wants a thriving economy, she needs to let businesses breathe. Cut the red tape, lower employment costs, and encourage growth. The rise in NI for employers was a mistake – many would welcome a U-turn.”
Rather than deterring foreign buyers, we should be encouraging them
– George Nares, co-founder of Blue Book Agency
Wish: “At the top of my wish list is a substantial reduction in Capital Gains Tax – ideally to 5-10%. This relatively new tax ultimately deters transactions, discouraging people from selling assets, including property. Lowering it would incentivise sales rather than stagnation, stimulating far greater economic activity and, ironically, generating more tax revenue than repeated hikes ever could.
“A reduction in Stamp Duty would also be welcomed. Successive increases have prompted buyers to limit the number of property transactions in their lifetime. Where people once moved as their needs evolved, newlyweds today are more likely to purchase a long-term home that accommodates future children rather than upgrading gradually. A lower tax would encourage more frequent transactions, increasing overall revenue despite a reduced rate. After all, high taxes are futile if they stifle market activity altogether. A more fluid property market means more money circulating through the economy. There is such an opportunity to turbo boost the market. Yet, the early signals from our new government suggest otherwise – so, regrettably, this may remain nothing more than wishful thinking!”
Nightmare: “My greatest concern is the prospect of yet another rise in Stamp Duty surcharges on second homes or foreign buyers. Such measures would dampen demand and make the UK less attractive to international investors. With uncertainty in the US and a fragile EU economy, now is precisely the time to welcome wealthy investors, not repel them. Rather than deterring foreign buyers, we should be encouraging them.”
It may be sensible for the Government to investigate why areas with low taxation, such as Florida, are doing so well
– Charles Curran, Managing Director at Maskells Estate Agent
“According to the OBR, in 2024/25 the Public Sector raised £1,148.7Bn (£40,000 per household) vs spending £1,276.2Bn (£45,000 per household). The UK is therefore running a budget deficit. Prior to the market correction over the past weeks, the impending US Tariffs and the expected spend on defence, the OBR predicated that this deficit would fall to £70.6bn over the next five years. It is now likely to take much longer.
“Whilst the cost cutting headlines are welcome, our opinion is that the only way to deal with this debt pile is economic growth, which can only be obtained via investment and confidence, both home-grown and foreign. For example, at home, imposing Inheritance Tax on Farmers and businesses is, simply put, ill-conceived as no thought has been levelled on how this tax will be paid: The burden is likely to lead to the closure of small companies and farms, if they survive the Employer NIC increase. The IHT post NIC increase has been likened to “salting the ground after the battle” by Andrew Griffith MP, Shadow Business Secretary. Overall Business Confidence, according to the Adam Smith Institute’s latest survey, is now of 2.6 out of 10 with 77% of respondence reporting low or very low confidence. It is no wonder foreign corporate investors are waiting by the side-lines.
“For foreign individual investors, Labour must ask itself why anyone would tie themselves to a high tax jurisdiction whereafter 10 years their global assets would fall under the UK inheritance Tax net, even if those assets have nothing to do with, and were not generated in the UK. It may be sensible for the Government to investigate why areas with low taxation, such as Florida, are doing so well.
“Therefore, Labour needs to introduce an attractive tax regime to drive investment and positive sentiment that in turn will have a galvanising effect across all sectors, including the property market. In our opinion, the Chancellor needs to continue cutting costs, talk to the Gilt Market, lower taxes, reduce red-tape and then leave it to the private sector.”
The danger is that prime properties are once again seen as easy targets
– Robin Edwards, Partner at London buying agency Curetons
“To be honest we’re really not hopeful about Rachel Reeves’ Spring Forecast, the best we think we can expect is a bit of economic stability and predictability. The prime property market relies on confidence – when buyers and investors feel secure in their financial outlook, they’re far more willing to make significant purchases.
“Stamp duty remains one of the biggest issues, acting as a deterrent not just to new buyers, but also to those looking to move up or down the ladder. While it’s unlikely we’ll see a wholesale reduction, even the hint of an easing or targeted relief for specific groups, such as first-time buyers and downsizers, could inject some much-needed momentum into the market.
“What we most fear is that Reeves in her desire to appear “fiscally prudent” opts to introduce further tax hikes or clampdowns on prime property. There’s been a lot of rhetoric around wealth taxes recently and the danger is that prime properties are once again seen as easy targets. Additional taxes, whether on second homes, foreign ownership or more stringent capital gains tax on high-end property sales could prove devastating.
“It’s not just about more taxes though, but the ongoing erosion of incentives that once made London so appealing to HNWIs around the world. Non-dom reforms have already chipped away at the city’s appeal for wealthy internationals. The UK lost 10,800 millionaires to foreign countries last year, more than double the number that left in 2013. That means since Labour came to power one millionaire has left the UK every 45 minutes. We don’t need yet another signal that the UK is an inhospitable place to put down roots or invest. The constant uncertainty around taxation only amplifies the sense that the UK is becoming increasingly unwelcoming to wealth and success.”
Sustained policy stability would serve as a positive springboard
– Laura Dam Villena, Head of London residential agency at Cluttons
“While stamp duty reductions would be very welcome, it’s unlikely any significant changes will be made.
“In any event, the ideal outcome of the spring budget would be for Rachel Reeves to deliver a statement that creates confidence in the growth of our economy. Sustained policy stability would serve as a positive springboard, encouraging activity amongst both domestic and international buyers alike.”
Be bold and scrap Stamp Duty altogether
– Jennie Hancock, founder and director of West Sussex & Hampshire buying agency Property Acquisitions
“It might seem like a distant memory, but many of us in the property industry can remember the halcyon days of a single 1% rate of stamp duty, until it started creeping steadily upwards after 1997.
“People moved house every 3 or 4 years, when their circumstances changed such as a new job, a new baby, or when their children had left home and they wanted to downsize. And every time they did so, solicitors, estate agents, surveyors, removals firms, builders, architects and so on, all got paid – and so did the government via their taxes.
“Today, stamp duty has distorted and constrained the market so heavily, that we have older homeowners rattling around in large family homes which they no longer need or want, because they can’t face handing £150,000 to the tax man. They would rather stay put and hire a gardener or a housekeeper with that money.
“Meanwhile families are crammed into smaller properties, unable to afford to upsize because there aren’t enough large family homes to choose from. Plus, the stagnated market means they probably haven’t made much on their current home – so the enormous stamp duty bill they would face to upsize has to come out of their existing equity.
“When people don’t move home, the economy suffers, which is why stamp duty is such a pointless and prohibitive tax. As well as all the service providers and suppliers in the property ecosystem who lose out, it’s harder for companies to recruit, workers are forced to commute further to work and you end up with a far less mobile and less productive population.
“This is unlikely to be a tax cutting budget, but I wish the government could see just how much of an economic own goal stamp duty is.”
To attract investors, entrepreneurs as well as wealthy individuals, we would like the Chancellor to consider tax incentives and streamline regulations that promote innovation
– David Johnson of property consultancy INHOUS
“Although there is no traditional Spring Budget this year, we expect the Chancellor to announce further measures to tackle the nation’s debt and rising inflation which has hit 3% last month. To date, Rachel Reeves’ Autumn Statement has had a number of implications on the UK property market; especially on first-time buyers who will be facing higher stamp duty thresholds as of April.
“Despite news of wealthy individuals leaving the UK, we have since seen a gradual increase in the number of buyers with budgets over £5million. The Chancellor’s more recent decision to soften non-dom tax changes may have contributed to this uplift. To attract investors, entrepreneurs as well as wealthy individuals, who are crucial for the UK economy, we would like the Chancellor to consider tax incentives and streamline regulations that promote innovation.”
We are still not seeing the return of international buyers who were ever present in the years before Brexit
– Dominic Agace, Chief Executive of Winkworth
What measures could the Chancellor announce in a Spring Forecast Statement that would bolster the property market? “A full-scale replacement for the Help to Buy scheme to ensure there is demand for developers to build the right properties for first time buyers and to help FTBs get on the housing ladder. This would support developers to help meet their house building targets – and those set by the Government. The Government needs to tackle stamp duty if they want to make it easier to move and have the economic benefits of a more fluid housing market. This has been proven every time there is a tweak to stamp duty – most recently by the rush driven by the March 31st deadline.”
Which policies could (or already are) doing most damage to the high-value residential property sector? “From a London perspective, we are still not seeing the return of international buyers who were ever present in the years before Brexit. This reflects the fact that so far Labour hasn’t boosted the demand from the international community to live and work in London. The growth narrative from the Government has yet to be delivered. The prevailing sentiment is concern about future taxation targeting high net worth individuals. The Government needs to change the mood music. Reforming their own non-dom taxation initiative further would go some way towards that. They also need to address inheritance tax changes. Non-doms who have built wealth overseas are now finding it will be caught up in UK taxation should they stay too long in the country. The top of the market is struggling in the face of this.
“This seems to be more of a political stance, rather than one rooted in economics. These high net worth individuals are wealth generators. This is recognised by other countries such as Italy, which is actively pursuing them. The UK, as a small nation without an abundance of natural resources, is at its best as an internationalist trading nation. To fulfill the role globally, it needs to look at changing its international perception. More effort is being made on the international stage and global relations. However, policy needs to follow, and so removing barriers to net worth individuals to live here would be a good starting point.”
Stamp duty has to be reformed
– Nick Austin, agent with RiverHomes in Putney, and Conservative councillor & housing spokesperson for Wandsworth council
What measures could the chancellor announce in a Spring Forecast Statement that would bolster the property market? “Stamp duty has to be reformed. Boomers are staying in homes that are far too large for them because they can’t afford the stamp duty that they’d invariably have to pay to downsize. They’re not moving down the property ladder which means that families can’t move up the ladder. First time buyers can’t enter the market because the whole market is log jammed. We may be operating near or at the top of the market but the bottom of the market has to move to support the rest.
Which policies could (or already are) doing most damage to the high-value residential property sector? “Where do I start? The tax relief reductions on buy-to-let, the doubling of council tax on second homes and the changes to non-dom status are all leading us to where we are now. It’s a demand issue. Almost every agent has a surplus of flats on their books they are struggling to shift. The gulf between flat prices and house prices has never been wider and today’s headlines show that there have never been so many empty properties in London yet we have a housing shortage. What’s more, agents rely on volume and it was typically apartment sales that we relied on to keep up the number of transactions. Flat sales injected liquidity into the property market and without them, the whole property industry suffers.”
Any moderation of SDLT would be welcomed. However, neither moderate or substantial changes seem likely
– Simon Capp, Head of Residential Sales at British Land
“Stamp Duty (SDLT), alongside purchase and ownership costs, is front of mind for buyers when calculating the affordability of prospective purchases. SDLT is a substantial source of revenue for the Chancellor, but to maximise tax revenue the right balance needs to be struck to encourage a healthy rate of transactional activity. Essentially at what level will SDLT encourage buyers to buy and sellers to sell.
“With headwinds continuing in the market, namely elevated interest rates which are expected to track downwards slower than earlier predictions, buyers in the current climate are measured and methodical in their decision making. As an affordability barrier, any moderation of SDLT would be welcomed. However, neither moderate or substantial changes seem likely. The UK residential market is remarkably robust, and so far, 2025 has demonstrated green shoots with increased new enquiries and strengthened appetite from buyers looking to make a property move by the end of the year.”
The biggest threats to the market have already hit, and are here to stay
– Ranjit Thaker, Founder of Thaker Acquisitions
Fears: “The biggest threats to the market have already hit, and are here to stay. The most realistic announcement that should come into force is an extension for First-time buyers to benefit from the current threshold of £425,000 before being liable for SDLT. Although this is more fruitful to the lower end of the market, it will create momentum and prevent subdued transaction volumes in the liquid core market from £500k – £3m in central London.
“Another way the chancellor could show some ingenuity would be to incentivise downsizers and homeowners looking to restore and refurbish unmodernised empty properties. Domestic families looking to downsize hesitate due to the front-loaded buying costs, so by creating some downsizer relief this would naturally create more of a buying cycle and free up much-needed family homes. Currently, buyers brave enough looking to undergo extensive work have a VAT benefit of 5% on renovations for properties that have been empty for two years or more. Reducing this window to say 1 year would create impetus for end users to take on full projects in a market where turnkey stock is heavily undersupplied.”
Hopes: “The aftermath of the chancellor’s NonDom reform changes, specifically on the IHT 10-year tail, has caused the exodus of millionaires that has dominated headlines in 2025. NonDoms exposed to UK inheritance tax on their worldwide assets along with additional stamp duty surcharges have been the kiss of death in terms of sentiment. The biggest issue is some people may relocate but are not in a rush to sell their high-value assets and are opting to retain these homes in their portfolios, thus creating even more pent-up inventory. The total buying costs for an overseas buyer are now maxing out at 19% and with stock levels increasing, they are in the driver’s seat to sit back and be discerning.”
It is unlikely that the Chancellor will take pity on landlords
– Mark Harris, chief executive of mortgage broker SPF Private Clients
“The obvious choice perhaps for boosting transactions in the housing market is reform of stamp duty. The government is keen to support first-time buyers as demonstrated with the continuation of the albeit rebadged Mortgage Guarantee Scheme, so not extending the current stamp duty concession, which ends on 31 March, is a little surprising. Perhaps consideration of a revised scale for first-time buyers will be revisited and if it isn’t, then it should be.
“First-time buyers are strapped for cash and face a big enough struggle to pull together a deposit – shelling out thousands of pounds on stamp duty on top is a disincentive to buying. And if we don’t have enough first-time buyers, which are the lifeblood of the market, those transactions higher up the ladder which are dependent on having a first-time buyer at the bottom, won’t happen either.
“At the other end of the scale, an incentive – again, most likely stamp duty reform – for those seeking to downsize would be helpful. Many properties are under-occupied by older borrowers who want to downsize but face too many barriers to doing so. Scrapping stamp duty for this cohort may lead to more supply to the property market.
“Housebuilding is said to be very important for this government, as indeed it has been for every other. With the drive to build 1.5mn properties, perhaps a revised version of Help 2 Buy could be considered. While the scheme had its detractors, it did incentivise builders to build as well as offering assistance to borrowers so that they could obtain finance.
“While landlords may feel they have been politically targeted and financially beaten enough, it is unlikely that the Chancellor will take pity on them and reverse any recent moves. With Reeves caught in a sticky position, either having to cut back on spending or raise revenue, she may look at changes to capital gains tax. This was left unchanged in the Budget, despite fears that it could increase considerably on property sales. If noise is made around increases to CGT, this may encourage further amateur landlords to sell up.”
An extension of the enhanced SDLT thresholds would be beneficial
– Lisa Simon, Head of Residential, Carter Jonas
“An extension of the enhanced Stamp Duty Land Tax (SDLT) thresholds would be beneficial as it supports first-time buyers and stimulates broader market activity. Furthermore, an in-depth review of SDLT is warranted. The current structure has significant jumps at higher property values, which can disproportionately affect the housing markets across different regions. In some areas, high-value properties represent a significant portion of the market. Adjusting the step changes in SDLT for these properties could enhance their appeal and help unlock movement in this segment of the market.
“Recent changes to non-domicile tax rules have created significant market uncertainty. Easing some of these rules may encourage greater overseas or international investment in the prime property sector.
“Additionally, an adjustment to Capital Gains Tax (CGT) could motivate homeowners to sell, thereby increasing market supply. Specific CGT relief for certain prime properties, such as those that have been recently renovated, could also be beneficial.”
The Chancellor needs to signal to international investors that the UK is still the right place for them to work, invest and ultimately pay tax
– Liam Monaghan, Managing Director of LCP Private Office
“Having spent the last few weeks travelling in Asia, it is apparent that the Chancellor needs to signal to international investors that the UK is still the right place for them to work, invest and ultimately pay tax. Once you encourage one individual, the rest will follow. If she continues to grab for higher percentage points on Income tax, SDLT, CGT and IH, it will further chase away HNW individuals from the UK, having the opposite effect. Something that could make or break their premiership.’’
What measures could the Chancellor announce in a Spring Forecast Statement that would bolster the property market?
- “Tax reform – Reviewing the current systems for stamp duty, inheritance tax and CGT and ultimately reducing rates would help unlock the market, particularly for BTL investors who have faced an ever-growing number of challenges, regulations and increased financial responsibilities which have discouraged growth in this sector.
- “Addressing issues in the Planning system – Simplifying and expediting the planning process to allow developers to bring new high-end residential projects to market more quickly, as well as introducing measures to encourage the construction of more high-end properties in PCL to meet demand, such as incentivising developers and relaxing certain building restrictions.
- “Introducing measures to help speed up the conveyancing process to increase transaction levels and generally improve the efficiency of the market. Measures might include enhanced digitalisation and automation of the system, streamlining the local authority search process, encouraging the use of technology more in the legal sector and even setting a transaction deadline policy.
- “Measures to promote domestic investment – such as tax incentives, or a government led scheme akin to Help to Buy but for luxury property, to attract more domestic high-net-worth individuals to buy in Central London.”
Which policies could (or already are) doing most damage to the high-value residential property sector?
- “Increased stamp duty rates, particularly for properties over £1.5 million, have pushed up transaction costs significantly, discouraging both domestic and international buyers from entering the market or making multiple transactions. The 2% surcharge for non-UK residents has had significant impact in reducing the attractiveness of the PCL market and deterring foreign investment. It has also created the perception that the UK is becoming less welcoming to international investors, driving them to look to other more advantageous jurisdictions for investment opportunities.
- “Reduced tax relief on mortgage interest payments for buy-to-let landlords and the additional stamp duty surcharge on second homes have significantly negatively affected the rental and investment markets in PCL, disincentivising new investors from entering the market and leading many historic landlords to sell up. This in turn only negatively impacts the rental market from a tenant perspective, as a reduction in stock leads to higher rents, limited choice and high competition amongst renters.”
The time approaching every budget is full of uncertainty and sometimes anxiety
– Claire Whisker, founder of property advisor platform First In The Door
“The time approaching every budget is full of uncertainty and sometimes anxiety. There are often rumours of what may or may not happen, as regards property, most of which doesn’t happen. This year the fear is more tax aimed at either property directly through the recently mentioned wealth tax, or more tax or costs associated with the transitional costs of moving. For a lot of people in the higher price bands the escalating stamp duty table means 19% additional cost on top of the purchase price, and that is before lawyers fees, agents fees, removal costs etc.. Any change that adds more burden to the cost of moving we think will be detrimental to all levels of the market.
“In terms of hope – we always hope for the aforementioned to be reversed, so that the market starts to flow again, but this current government may not see the long term benefits of this policy in terms of the extra revenues generated by allowing people to buy and sell more freely.”
The reality is that without bold action, the market will continue to stagnate
– Alex Macaulay, MD at property developer Kinland
“The property market has long been held back by the same structural issues, yet little has been done to address them. If the Chancellor is serious about revitalising the sector, Stamp Duty Land Tax reform must be a priority. It remains the biggest obstacle to a dynamic, fluid market—discouraging transactions and making high-value residential property less accessible. Equally, we need to reconsider how we treat international buyers. For too long, they’ve been pushed away by punitive surcharges and an increasingly hostile tax environment, which has significantly weakened demand in the prime sector.
“Inheritance tax is another antiquated regime that stifles long-term investment, adding unnecessary complexity to an already convoluted system. Instead of policies that encourage growth, we’ve seen layers of taxation that make the market less attractive to both domestic and international buyers. The reality is that without bold action—whether through tax simplification, incentives, or a more welcoming approach to global investment—the market will continue to stagnate. Unfortunately, history suggests that rather than meaningful reform, we are more likely to see minor tweaks at best, or further taxation at worst, as the government looks to fill its coffers rather than support the real estate sector.”
Restrictive rules still prevent many smaller housebuilders from accessing the loans they need
– Wayne Douglas, MD at City & Country
“The recent extension of the Home Building Fund for SMEs is a step in the right direction, but restrictive rules still prevent many smaller housebuilders from accessing the loans they need. This scheme alone isn’t enough. The Government must go further by offering zero or low-cost finance through Homes England, available to all SMEs, not just those rejected by commercial lenders.
“This could really level the playing field, taking away an unreasonable level of risk to make smaller, potentially more tricky schemes, like urban brownfield sites and empty retail spaces, into viable projects for smaller housebuilders, that would never be of interest to the largest players.
“Without suitable finance support from the Government, these sites will remain untouched, and the Government’s 1.5 million homes target will be out of reach.”
Clarity is required on key tax policies, including non-domicile status, Inheritance Tax, and Capital Gains Tax
– Marco Previero, Co-Founder and Head of Research at R3Location
“The government should prioritise policies that lower transaction costs to encourage investment and stability. While we do not expect this to happen, a clear commitment to reforming Stamp Duty Land Tax, for example, particularly by reducing rates for prime and super-prime properties, would provide much-needed stimulus to a market that has stagnated over the past year.
“Clarity is also required on key tax policies, including non-domicile status, Inheritance Tax, and Capital Gains Tax (CGT), especially considering last year’s budget uncertainty and policy reversals. Potential tax hikes on high-value properties, such as increased annual property taxes are a concern, but unlikely to happen this spring – the same may not hold true for higher CGT rates. I fear that the Chancellor may attempt to rebalance the current political narrative surrounding benefit reform by shifting focus onto wealthier property owners, but I hope this is not the case.
“What’s more, any adverse changes to non-domicile tax rules would only heighten uncertainty, further weakening an already fragile prime property market.”
Prime country house buyers are just starting to get used to a degree of what feels like relative stability, not more uncertainty
– Ross D’Aniello, Co-Founder of Midlands-based estate agency Chartwell Noble
“With the Chancellor’s Spring Forecast looming, buyers and sellers in the prime country house market across central England, the Cotswolds, are just starting to get used to a degree of what feels like relative stability, not more uncertainty.
“At Chartwell Noble, we see first-hand how uncertainty can have a detrimental impact on confidence and how tweaks to tax policy can shape sentiment. If Rachel Reeves wants to bolster the market, Stamp Duty reform for downsizers would be the single most effective move. The current structure stifles transactions at the top end, particularly for downsizers who could free up supply. A targeted SDLT reduction for those looking to downsize – or even a holiday – would inject much-needed confidence and be beneficial.
“What we fear most is a fresh assault on property wealth. Even talk of a ‘Mansion Tax’ or higher Capital Gains Tax on additional homes would discourage investment and stagnate the market. Rural estates and landowners are already feeling sore from the impact of recent changes to Inheritance Tax relief on agricultural and development land, making succession planning more complex and discouraging long-term investment. If the government tightens these rules further, it risks further undermining rural property values and land supply.
“Equally damaging would be more punitive levies on overseas buyers, which could deter demand for best-in-class properties. The prime property sector is a major driver of economic activity beyond just sales. More tax isn’t the answer, liquidity is. The Chancellor should focus on encouraging movement, not penalising those who want to transact.”
Changes to non-dom tax status are already having a detrimental impact on the prime property market
– Henry Lumby, Chief Commercial Officer at Auriens
What measures could the Chancellor announce in a Spring Forecast Statement that would bolster the property market? “One of the most effective ways to stimulate the prime property market would be to reform Stamp Duty. The current high rates of Stamp Duty have significantly contributed to stagnation in the London property market over the past decade, discouraging transactions and limiting real growth. A targeted reduction, particularly for those downsizing, would incentivise homeowners to move from properties they are under-occupying, freeing up larger properties and increasing overall market activity.”
Which policies could (or already are) doing most damage to the high-value residential property sector? “The proposed changes to non-dom tax status, coupled with the lack of detail since the Budget, are already having a detrimental impact on the prime property market. The uncertainty surrounding these changes has deterred international buyers, leading to lower transaction volumes and a slowdown in the prime London market. This hesitation is not only affecting property investment but also wider economic activity. The policy is counter to the Government’s stated aim of driving economic growth and is ultimately reducing tax revenues, with HMRC already seeing a decline in Stamp Duty receipts.”
While a cut to SDLT across the board is highly unlikely, it would significantly stimulate market activity
– Peter Greatorex, Managing Director, Peter Greatorex Unique Homes
“As with any fiscal forecast, there is always an opportunity to support the prime property market by reassessing Stamp Duty Land Tax (SDLT). While a cut to SDLT across the board is highly unlikely, it would significantly stimulate market activity, benefiting both buyers and sellers by reducing the upfront tax burden and improving market fluidity. Additionally, the recent increase in SDLT for additional properties from 3% to 5% is already deterring investment in the rental sector, exacerbating supply shortages and driving up rents. A more balanced approach would encourage investment, supporting both the sales and lettings markets. Furthermore, targeted incentives for urban property development, particularly in historic cities like Bath, would provide a further boost by supporting the refurbishment of existing buildings and the construction of high-quality apartments to meet growing demand while preserving architectural heritage.
“Most damaging would be further increases in SDLT for high-value properties, which would dampen market activity and potentially lead to reduced transactions and stagnation in the sector. The super-prime market has already seen price corrections, and additional tax burdens would only accelerate this trend. Moreover, recent changes to taxation for non-domiciled residents risk discouraging international investors who have long played a crucial role in the UK’s luxury property sector. While ensuring fairness in taxation is important, maintaining policies that attract global investment is essential to sustaining the health of the prime residential market.”
