Rumoured property tax changes have already slowed the UK housing market, according to data from PriceHubble.
The number of new homes coming onto the market fell by 6.1% in the second half of August, as sellers waited for the Autumn Budget.
More sellers also pulled their homes from sale, with withdrawals up 23%.
The sharpest rise was for homes under £500,000, up 27%, as owners hoped for a Stamp Duty cut.
High-end homes over £1.5m saw a slight increase in listings, with sellers looking to get ahead of possible new capital gains or wealth taxes.
Nearly half of estate agents noticed an impact from the tax rumours, with 35% seeing fewer new listings.
Agents also saw hesitancy from both buyers and sellers, including downsizers.
Tim Leunig, former treasury adviser, said property should be taxed based on its actual market value.
Rachel Reeves and Keir Starmer have both hinted that tax reform may be central to Government plans.
About 69% of properties for sale in the UK are under £500,000.
Any change to Stamp Duty could encourage buyers at this level to wait, according to PriceHubble.
In London and the South East, fewer than half of homes for sale are under £500,000, while 8% are over £1.5m, making these regions more exposed to changes.
In the North, lower prices mean Stamp Duty reform could open doors for first-time buyers.
Listings fell in most price bands after the tax rumours started.
There was a 23% rise in homes withdrawn from the market in late August, with the biggest increase among those under £500,000.
Withdrawals made up 4% of properties in late August, up from 3.2% earlier in the month.
This year, transactions have been 19% higher than in 2024, driven by a rush to beat earlier Stamp Duty changes.
With new listings dropping and withdrawals rising, PriceHubble expects Government data to show a fall in sales in the coming months.
