Property market will need to stay resilient to tackle Budget council tax shake up
98,450 transactions completed in October despite ‘kite flying’ uncertainty.
The property market will need to keep being resilient to tackle Rachel Reeves’ council tax Budget shake up, say leading audit, tax and business advisory firm, Blick Rothenberg.
Mark Cunningham, a partner at the firm said: “Despite the kite flying and uncertainty created in the long run up to the budget, HMRC’s statistics show an unexpected rise in October transactions, showing resilience in the market. Which after the chancellor, Rachel Reeves shake up of council tax bands, will be vital in the coming months.”
He added: “HMRC data show seasonally adjusted completions up 2% month‑on‑month to 98,450, and non-seasonally adjusted transactions up 13%. But the measures announced in the budget will now shape future activity over the next six months.”
Mark said: “At the upper end of the market, I anticipate some disruption to transaction numbers and price adjustments as buyers and sellers realign their expectations, following the announcement of the High Value Council Tax Surcharge.”
He added: “Transaction numbers may also be lifted by landlords exiting portfolios following the announced 2% property income tax increase, accelerating disposals in the coming months.”
Mark said: “With Budget uncertainty now behind us, a stabilising economic environment, and anticipated interest rate cuts, we expect transactions to gradually pick up, though the dynamics will differ across price segments.”