Coventry Building Society is pressing Chancellor Rachel Reeves to confirm the date of the Autumn Budget, warning that ongoing speculation about major tax reforms is unhelpful for the housing market.
Media speculation suggests the Chancellor is weighing up changes to Stamp Duty, potentially ending Capital Gains Tax exemptions for higher-value homes, and proposing a plan to extend National Insurance contributions to include rental homes.
Coventry BS points out that with the Office for Budget Responsibility (OBR) usually requiring 10 weeks’ notice to prepare for a Budget, the earliest date is now likely to be in November – leaving the market facing at least two months of uncertainty.
Commenting on the lack of clarity on Budget date, Coventry BS head of intermediary relationships Jonathan Stinton said the consequences of all this speculation was very real.
“Every time a new rumour surfaces it creates more uncertainty, and the housing market really doesn’t thrive on guesswork.
“Even the hint of tax changes is enough to make buyers and sellers worry about their next step. We could see people trying to hold off buying in case a tax break is around the corner, while others feel pressured to offload a property quickly before any rules change. That could mean chains collapse and families are left in limbo.”
He added: “The Chancellor shouldn’t leave people twisting in the wind. We need clarity – either quash the rumours or confirm the details. And, most importantly, set a date for the Budget so buyers, sellers and the market know how much more of this they have to endure.”
