Coventry Building Society has urged Chancellor Rachel Reeves to set a date for the Autumn Budget, saying ongoing speculation about major tax changes is creating problems for the housing market.
Reports indicated that the Chancellor is considering a range of measures, including changes to Stamp Duty, an end to capital gains tax exemptions for higher-value homes, and extending national insurance contributions to rental properties.
The Office for Budget Responsibility (OBR) typically needs 10 weeks’ notice for a Budget, making November the earliest possible date.
This means the market faced at least two months of uncertainty, according to Coventry Building Society.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “The consequences of all this speculation are very real.
“Every time a new rumour surfaces it creates more uncertainty, and the housing market really doesn’t thrive on guesswork.
“Even the hint of tax changes is enough to make buyers and sellers worry about their next step.”
Stinton added: “We could see people trying to hold off buying in case a tax break is around the corner, while others feel pressured to offload a property quickly before any rules change.
“That could mean chains collapse and families are left in limbo.
“The Chancellor shouldn’t leave people twisting in the wind. We need clarity – either quash the rumours or confirm the details.
“And, most importantly, set a date for the Budget so buyers, sellers and the market know how much more of this they have to endure.”
