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RSM UK Urges Tax Review Ahead of Autumn Budget as House Price Growth Slows
RSM UK has called on the government to prioritise a review of tax policy to stimulate the UK's stagnating housing market ahead of the Autumn Budget. The call comes as the latest UK House Price Index shows average house prices fell 0.2% on a seasonally adjusted basis from June to July 2026, with London seeing an annual decline of 3.3%.
What the Latest House Price Data Shows
The average UK house price in July 2026 stood at £273,000, up £4,000 from the previous year, a 1.4% annual increase. Growth has slowed markedly, down from a 2% annual rise the previous month and 3% the month before that. RSM UK attributes the weakening figures to decline in London.
Stacy Eden, National Head of Real Estate at RSM UK, said house prices had at best flatlined on a national level, with continued disparities between the North and the South. London remains particularly affected by what were described as penal rates of Stamp Duty Land Tax (SDLT) and high mortgage rates.
Pressures on Landlords and the Rental Market
For letting agents, one of the most significant points concerns the rental sector. RSM UK said London's rental market is disproportionately affected, with landlords exiting the market due to increasing regulation around renters' rights and leasehold reform, alongside concerns around building safety and high service charges.
Economic Headwinds for Buyers and Developers
Economic pressures continue to weigh on the sector. Mortgage approvals are running below their long-term average as rising gilt rates drive concerns around the UK's fiscal position. With the ONS reporting an inflation rate of 3.1%, the Bank of England faces further pressure to increase interest rates, which could in turn hit mortgage approvals.
RSM UK also highlighted the rising cost of building a home, up £76,000 since 2020. Combined with stagnant house prices, this is making an increasing number of developments unviable. The firm warned that the Building Safety Levy, coming into force on 1 October 2026 as an additional tax on new residential buildings in England, could further challenge the viability of new developments.
What RSM UK Wants from the Budget
RSM UK wants the government to use the Budget to stimulate demand, including reform of SDLT to reduce penal rates at the top end of the market, allowing first-time buyers and other consumers to afford a purchase without a significant tax cost. The firm also called for the reintroduction of multiple dwelling relief, abolished in 2024, noting that the build to rent sector accounts for around 10% of new homes and sells approximately twice as fast as other buildings.
Source: PropertyWire