Capital gains tax implications

The property market is seeing a marked shift, with a growing number of larger homes coming up for sale as speculation builds around potential changes to Capital Gains Tax (CGT). As we head towards the anticipated October budget, the market has seen an increase in four bedroom properties, and larger, for sale. 

Recent figures from leading property portal Rightmove highlight a 15% rise in larger homes hitting the market in early September, compared to the same period last year. The upswing seems driven by homeowners aiming to make the most of the current market conditions, possibly anticipating higher taxes on second homes and property investments.

The possibility of CGT reform is adding fuel to the fire, with expectations that the upcoming budget will introduce a series of tax changes designed to boost government revenue. Experts suggest that second homeowners and landlords may be among those most impacted, which has led to some opting to sell before potential tax increases are made.

Lower mortgage rates are also shaping the market. The Bank of England’s recent interest rate cut has encouraged more buyer activity, with some expecting further reductions. This is particularly notable at the higher end of the market, with sellers of larger homes seeing it as a window of opportunity.

Across the broader housing market, the latest data from the Royal Institution of Chartered Surveyors (RICS) points to a modest rise in homes for sale and positive buyer demand. Surveyors have reported a pickup in sales, with further growth anticipated as we approach the last quarter of the year.

However, there is some uncertainty around future interest rate cuts, and the October budget could still impact decision-making. That said, recent house price reports from Halifax and Nationwide show that the market is holding steady, with a rise in mortgage purchases from those new to the property ladder.

With the end of the year fast approaching, it will be interesting to see how these factors influence the market, moving forward.

If you are a homeowner thinking of selling, feel free to contact your nearest branch for advice, guidance or a free valuation.