Almost half of would-be property buyers hit pause button

Nearly half of all property buyers have either hit the pause button or are thinking about it ahead of next month’s Budget.

That’s the finding from new research, which reveals 27% have put their plans on hold, with a further 21% of potential buyers considering it.

Around 54% of those who are now waiting, had already started browsing properties online, while 19% had contacted estate agents, according to analysis by House Buyer Bureau.

A further 12% had already attended property viewings before deciding to wait, while just 15% had yet to start searching at all.

Mortgage rates

The potential impact on mortgage rates is the most common reason given by those waiting, cited by 23%.

There is speculation that new Chancellor John Healey will introduce more punitive rates of Mansion Tax in the Budget on 28 October, and is considering aligning Income Tax and Capital Gains Tax, which would hit landlords.

Once the Government has shown its hand, some of this uncertainty should lift.”

Chris Hodgkinson, managing director of House Buyer Bureau, says: “Autumn Statement speculation has become an almost annual headache for the property market and uncertainty over what might be announced can cause buyers to think twice before making such a significant financial commitment.

“Once the Government has shown its hand, some of this uncertainty should lift and buyers may well return to the market. But until then, sellers could face an even tougher battle to secure a buyer and, for those who simply can’t afford to wait, the speed and certainty of a guaranteed sale may become increasingly important.”

Earlier this month, major housebuilder Berkeley warned that property buyers are waiting to see what next month’s Budget contains before taking the plunge.