As Chancellor Rachel Reeves prepares to deliver her Autumn Budget, the residential property market is watching closely. Proposed reforms could significantly reshape how property is taxed and transacted across the UK, with two standout ideas: an 8% National Insurance levy on rental income (as reported by The Guardian) and the replacement of Stamp Duty Land Tax with a national property tax.
Rental income under pressure
The proposed National Insurance charge on rental income could raise billions for the Treasury, but it may also place a heavy burden on landlords. Currently, landlords pay income tax on rental profits and benefit from deductions such as mortgage interest relief and maintenance costs. Removing these allowances while adding a new levy risks pushing many smaller landlords out of the market.
For tenants, this could mean fewer rental options and higher monthly costs. For property lawyers, it signals a wave of tenancy reviews and compliance updates.
Stamp Duty shake-up
Even more radical is the potential overhaul of Stamp Duty Land Tax. According to Zoopla, 83% of property transactions currently attract stamp duty. The proposed model would target homes above £500,000, around 20% of the market.
Under the new system, tax would be calculated based on the final sale price and duration of ownership. This adds complexity and uncertainty, potentially slowing transactions and increasing costs for buyers and sellers.
A two-tier market?
Any threshold-based tax system risks deepening regional disparities. In the past five years, around 5.9% of property sales in London and 1.6% in the Southeast were at £1.5 million or above, according to data from Savills. A Capital Gains Tax on primary residences above £1.5 million would disproportionately affect homeowners in affluent areas like ours, challenging long-standing principles that protect the family home from taxation.
Downsizing dilemmas and market hesitation
Even speculation around reform can distort the market. Sellers delay listings, buyers hesitate, and price expectations diverge. For older homeowners, the prospect of new taxes may discourage downsizing, further tightening supply for growing families.
Implementing a national property tax would also require a robust valuation and appeals system, an administrative challenge that could take years to establish.
Moore Barlow: Trusted residential property experts
At Moore Barlow, we understand that property transactions are more than legal processes, they’re personal milestones. Whether you’re purchasing a city townhouse, a coastal retreat, or a countryside estate, our Residential Property lawyers deliver tailored legal guidance with precision and care.
We’re proud to be trusted advisers to high-net-worth clients and professional referrers, offering expert support across town, coast, and country. Our unified team is committed to excellence, efficiency, and discretion—ensuring every transaction is handled with professionalism and clarity.
What comes next?
For homeowners and landlords in Richmond and Barnes, staying informed and seeking early legal advice will be key. The property market has weathered many changes in recent years, this could be another, unless reforms are introduced with clarity and foresight.
Reform is needed, but it must be handled with care. Transitional arrangements, regionally sensitive thresholds, and clear guidance will be essential. At Moore Barlow, we’re already advising clients on how to prepare for potential changes and will be ready to support them through whatever the Autumn Budget brings.
