UK house price growth slows as calls for property tax overhaul mount
Nationwide data show month-on-month prices fell 0.1% in August as ministers weigh changes to stamp duty, council tax and landlord levies ahead of the Autumn Budget
Annual growth in UK house prices slowed in August and month-on-month prices dipped by 0.1%, Nationwide Building Society data show, as debate intensifies over a possible overhaul of property taxes ahead of the government's Autumn Budget.
The lender said the annual rate of growth in property prices fell to the joint lowest level recorded so far this year. The softer readings for August come amid reports that ministers are examining a range of reforms to raise revenue and stimulate the housing market.
Robert Gardner, chief economist at Nationwide, said the UK needs a tax system "that allows people to move more effectively." "It's definitely worth looking at UK property taxes," he added, framing the discussion around mobility and market efficiency rather than short-term revenue alone.
Options reportedly under consideration include introducing a National Insurance-style levy for landlords, removing capital gains tax relief on the sale of higher-value homes, abolishing stamp duty and replacing council tax with a national property tax. Officials have not confirmed a final package, and details remain the subject of internal discussion ahead of the Autumn Budget.
Supporters of broad reform argue that replacing transactional levies such as stamp duty with a more regular property-based tax could reduce barriers to moving home and improve market dynamism. Detractors and some analysts warn that major changes risk unintended consequences for different groups of homeowners, landlords and buyers, and could create short-term distortions in market activity as participants adjust to new rules.
The reported proposals come as policymakers balance competing objectives: securing revenue for public spending, addressing affordability and ensuring the housing market functions smoothly. With mortgage costs, supply constraints and demand dynamics continuing to influence prices, any tax changes would interact with these factors and could alter incentives for buying, selling and renting.
Housing taxes have been a recurring focus of debate in recent years, with successive governments adjusting stamp duty thresholds and reliefs in response to market conditions and political priorities. The Autumn Budget provides a formal moment for the Treasury to set out fiscal plans, but ministers have signalled caution about introducing measures that could unsettle markets or impose sudden burdens on particular groups.
Market participants and housing experts will watch for details on timing, scope and transitional arrangements if the government proceeds with reforms. Analysts say that the precise design — which properties are affected, how liabilities are calculated and whether exemptions or reliefs apply — will be decisive in assessing winners and losers and the likely impact on activity and prices.
For now, the Nationwide figures for August underscore a cooling in price growth that is feeding into the policy conversation. As the Autumn Budget approaches, stakeholders from developers and estate agents to landlords and homeowners are likely to seek clarity on any proposed changes that could alter the incentives to move, buy or invest in UK housing.