"The idea of an annual levy replacing Stamp Duty Land Tax is gaining traction, but there’s little detail on how it would work in practice. Uncertainty is the real issue, as it disrupts planning and stalls transactions"
- Richard Lynn - STB Real Estate Finance
Recent fiscal changes and speculation about future taxation are creating uncertainty and slowing momentum in the property market ahead of the Autumn Budget, according to Secure Trust Bank.
Richard Lynn, senior relationship director at STB Real Estate Finance, said the market is struggling to find direction amid rumours of further Stamp Duty Land Tax (SDLT) reform.
Speculation includes a potential reversal of the SDLT threshold reduction or more radical proposals, such as replacing SDLT entirely with an annual property levy. These developments follow the rollback of temporary SDLT relief measures that expired on 31 March. From 1 April, the nil-rate threshold for standard residential purchases reverted from £250,000 to £125,000, meaning buyers now encounter SDLT charges earlier in transactions.
While these changes have already affected buyer behaviour, uncertainty over future taxation is compounding market hesitation.
Richard Lynn said, “It’s no secret that there was a rush of loan completions leading up to the latest Stamp Duty Land Tax band changes, but data on asset classes like London apartments suggests that the market has since stalled. While capital remains available for development exit facilities, some developers are holding back on new schemes due to unclear exit strategies and shifting buyer sentiment."
“The idea of an annual levy replacing Stamp Duty Land Tax is gaining traction, but there’s little detail on how it would work in practice. Uncertainty is the real issue, as it disrupts planning and stalls transactions."
“We’ve seen how targeted interventions, like the enhanced Stamp Duty Land Tax on second homes, can have a significant effect. Making homes more affordable for local buyers is clearly positive, but there’s a strong argument for tapering such changes to avoid unintended consequences.”
Despite the broader market slowdown, Richard notes that mid-market housing continues to perform well, particularly for well-located properties marketed effectively. He says there is still appetite where value and quality align.
Looking ahead to the Autumn Budget, he predicts its impact will depend on how well it restores confidence, particularly among first-time buyers and developers facing affordability pressures.
“Consumer confidence drives economies. In my view, it’s one of the most significant leading indicators. The rhetoric around promoting growth must be backed by action. Otherwise, the downside risk is clear,” he said.
Responding to comments from MPC member Catherine Mann that Britons are afraid to spend,
Richard added, “I don’t agree. They’re not afraid – they just need certainty, which will inevitably morph into confidence. As the Autumn Budget approaches, the industry will be watching closely for signs of clarity and commitment to growth.”
