The air is thick with speculation ahead of November’s Budget regarding potential changes to property taxation. Key areas under debate include reforms to Stamp Duty, the introduction of Capital Gains Tax (CGT) on high-value properties, and the possibility of levying National Insurance contributions on rental income.
There is widespread guesswork about which of these measures might ultimately be announced.
That’s not where my focus is.
The crucial takeaway isn’t the specific tax changes, but rather the overarching direction they indicate for the property sector’s perception. This understanding is pivotal for determining the necessary adjustments to our operations to serve our clients better.
The Mood Music Has Changed
For years, housing policy focused on stimulating demand through first-time buyer schemes, Help to Buy, favourable tax treatment for landlords, and adjusting stamp duty thresholds. It wasn’t primarily about affordability. It was about access to credit and encouraging transactions.
But this time the tone is different. What’s being suggested isn’t stimulus, but rather extraction.
This shift in focus indicates that the Treasury now views property less as a growth driver and more as a revenue source.
Measures like stamp duty overhauls, council tax reform, and CGT on homes over £1.5m are not transaction-friendly policies, but rather revenue-raising measures. These changes could lead to a slowdown in high-end property transactions and a shift in focus towards properties under £1.5m.
That’s a notable shift.
Uncertainty Slows Everything
Even when policy changes don’t come into force right away (and they rarely do), merely discussing them causes friction.
The market does not wait for legislation; it waits for clarity.
When clients hear that stamp duty might change, or CGT might be introduced on their home, they hold back. Not forever. But long enough to slow down timelines, delay completions, and erode confidence, highlighting the need for clear, stable policies.
We’ve seen fewer new instructions lately. Not because buyers and sellers aren’t active, but because people prefer to avoid making a six-figure decision in uncertainty.
CGT on Prime Homes: A Signal, Not Just a Policy
If the CGT exemption is removed for homes over £1.5m, it won’t be about the money; it’ll be about the message.
The message is that high-end property is no longer out of reach.
That will change how people behave. Owners in that bracket will begin exploring trust structures, gifting strategies, and exit planning.
Meanwhile, activity in the sub-£1.5m range might rise, primarily if buyers and sellers aim to complete deals before anything definitive is announced.
The Landlord Squeeze Tightens Again
Applying National Insurance to rental profits might seem like a minor change. However, it isn’t. It continues a long pattern of tightening buy-to-let economics.
From restricted mortgage interest relief to energy compliance rules and tax changes, it’s been a series of small blows.
The result is fewer accidental landlords, more incorporated portfolios, and more strategic exits.
We’re already witnessing this unfold. Some clients want to exit completely, selling their properties and exiting the market. Others are restructuring, considering options like incorporating their portfolios or adjusting their investment strategies to mitigate the impact of these changes.
Beneath the Headlines: What This Means for Our Clients
None of this is confirmed. But the tone, the direction, and the intent are hard to miss.
Property is being repositioned. Not just in name, but in treatment as well. Less protected. More exposed.
So what does this imply for buyers, sellers, or agents trying to move things forward?
It means that timing is crucial. It means the margin for error becomes narrower. And it means that who you’ve got handling your legal work really begins to show.
You don’t need a tax adviser for that. You need a solicitor who understands how and when these shifts influence the pace, structure, and pressure points of a deal. A knowledgeable solicitor can help you navigate these changes, anticipate potential issues, and ensure that your transactions are conducted in a legally sound and efficient manner.
That’s what we do. We don’t engage in scaremongering or speculation. Instead, we provide solid, well-executed legal work from someone who’s paying close attention to the moving parts, so you don’t have to.
When the Budget lands, the headlines will focus on the numbers, but the real story will be what those numbers say about the government’s priorities. At our firm, we understand that what matters most to you is how these changes will affect your property transactions, and we are here to guide you through it.
Rachel Watts Residential Property Solicitor