RSM UK urgently calls on the British government to prioritise a review of tax policy before the Autumn Budget. The aim is to revitalise the currently stagnant residential property market in the United Kingdom. The latest UK House Price Index shows that average property prices, seasonally adjusted, fell by 0.2% from June to July 2026.
This development underscores the need for strategic intervention to restore momentum in the sector. Average property prices in the United Kingdom have been subject to various pressures in recent months, including increased mortgage rates and general economic uncertainty, which have affected potential buyers and sellers alike.
Potential Impact of Tax Policy Adjustments
Targeted adjustments to tax policy could significantly help to increase market liquidity and attract investment. RSM UK suggests evaluating various tax instruments that could create incentives for first-time buyers, promote housing construction, and reduce transaction costs. Such measures could stabilise demand and expand supply.
Experts from RSM UK emphasise that a comprehensive analysis of the current tax burden on property, including Stamp Duty Land Tax and Capital Gains Tax, is essential. It is not about blindly cutting taxes, but about finding a balanced policy that both secures government revenue and keeps the market functional.
Stagnation as a Challenge
The current stagnation of the property market represents a serious challenge for the UK economy, as the housing sector is traditionally an important indicator of economic health. A sustainable recovery of the market therefore requires not only fiscal adjustments but possibly also regulatory reforms that accelerate housing construction and shorten planning cycles.
- —Assessment of Stamp Duty Land Tax for incentives.
- —Adjustment of Capital Gains Tax on property.
- —Promotion of new residential construction through tax benefits.
- —Potential tax relief for first-time buyers.
These potential changes could help to restore market participants' confidence and generate positive momentum. A detailed discussion of these proposals is expected for the upcoming Autumn Budget, in which the government is likely to outline its economic policy priorities for the coming period.
