The fevered speculation around property tax on everything from CGT to replacing Stamp Duty with an annual property tax and National Insurance for landlords is causing serious disruption to the housing market, says  Fine & Country’s boss Jonathan Handford (pictured).

“At present, these ideas are no more than think tank trial balloons floated to test public sentiment. There is no confirmed policy, draft legislation, or timeline for implementation,” he says.

The mere suggestion of sweeping tax changes is already influencing behaviour.”

“However, the mere suggestion of sweeping tax changes is already influencing behaviour. We are seeing buyers and sellers using these rumours as leverage, some attempting to renegotiate agreed sale prices, others pushing for accelerated exchanges and completions in anticipation of reforms that have not been announced.”

Handford says it would be better to have a comprehensive announcement fully outlining any proposed reforms, rather than allowing parts of potential policy to leak into the public domain or fuel speculation.

Damaging speculation

And that’s because speculation itself can be as damaging as legislation, especially when buyers and sellers pause to ‘wait and see,’ the market stalls, chains break down, and confidence evaporates. This sense of paralysis ultimately harms everyone, from homeowners to businesses that depend on housing transactions.

Handford is therefore urging buyers and sellers to act with caution, saying: “The UK property market thrives on confidence, stability, and clarity. Allowing unconfirmed proposals to dictate decision making risks undermining transactions, reducing mobility, and damaging market momentum at a time when confidence is beginning to recover.”

He adds that while it is the role of government to review the tax system, it is essential that any changes are approached with care, clarity, and sufficient lead time to avoid destabilising the market. And Handford points out that historically, there have been instances where proposed leaked changes have been far more severe than what is actually introduced.