High-end property market takes unexpected hit as buyers step back before Budget
Pre-Budget worries caused major drop in luxury home sales leading to massive tax revenue losses. Market analysis shows significant decrease in high-value property transactions with wider effects on housing sector
High-end property deals showed big drop as buyers waited for Labourʼs Budget decisions‚ causing £140m loss in tax money (a study by estate agents shows)
The research from Knight Frank points to missing deals in premium segment: about 107 properties worth £5m-£10m and 35 homes over £10m didnt sell between spring and fall. This market slow-down happened because rich buyers stepped back – they werent sure about new wealth taxes
There were so many question marks in the run-up to the election and Budget about how wealth and property would be taxed
The pre-Budget time saw lots of talk about changes to capital-gains tax non-dom rules and stamp duty; while Rachel Reeves kept talking about a “£22bn black hole“ in UK money. All this made buyers think twice
The effects spread wider in housing market:
* Stamp duty brought £11.6bn last financial year
* Interest rates might reach 4-4.25% by winter next year
* Home asking prices dropped £5‚366 this month
* Current average price sits at £366‚592
Property website data shows prices fell 1.4% (more than usual autumn drop of 0.8%) suggesting Budget concerns hit harder than expected. Mortgage costs went up too as government borrowing got more expensive
