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UK house price growth slows amid property tax calls | |
(about 1 hour later) | |
House price growth has slowed as calls grow for a reform of property taxes in the Autumn budget. | |
The average price of a home in the UK grew by 2.1% in the year to the end of August, a slowdown from the 2.4% annual growth recorded in July, according to data from lender Nationwide. | |
The sluggish growth comes amid reports that the government is considering an overhaul of stamp duty, capital gains tax on homes, and council taxes in a bid to raise more money and boost the housing market. | |
Robert Gardner, chief economist at Nationwide Building Society, told the BBC the UK needs a tax system which "allows people to move more effectively". | Robert Gardner, chief economist at Nationwide Building Society, told the BBC the UK needs a tax system which "allows people to move more effectively". |
"It's definitely worth looking at UK property taxes," he added. | "It's definitely worth looking at UK property taxes," he added. |
The introduction of a National Insurance levy for landlords, removal of the capital gains tax relief on selling pricier homes, the abolition of stamp duty, and replacement of council tax with a national property tax are some of the options reportedly being discussed. | |
Experts' views on the changes are mixed, with some arguing that replacing stamp duty in particular could speed up the housing market but cost billions in lost tax revenue. | |
The average UK home now costs £271,079, according to Nationwide's data, which is based on its own mortgage activity. | |
August's annual rate of growth is the same as Nationwide recorded in June this year. The previous time house price growth was this slow was in July 2024. | |
Despite the drop in the pace of growth, Mr Gardner said housing remains unaffordable for many buyers. | Despite the drop in the pace of growth, Mr Gardner said housing remains unaffordable for many buyers. |
"House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years," he said. | "House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years," he said. |