The Middleman Mortgage Lenders Affiliation has warned Chancellor Rachel Reeves towards utilizing the housing market as a goal for tax rises in November’s Price range.
Any extra tax rises within the sector would fail to boost significant income and will as a substitute choke off financial development, the affiliation warned.
IMLA estimated that the entire property tax concepts floated to date, together with a brand new annual property tax, council tax reform and capital positive aspects tax on foremost residences, would collectively increase lower than £6 billion.
Kate Davies, govt director of IMLA, stated: “These numbers merely don’t transfer the dial.
“The Chancellor ought to resist the temptation to achieve for politically simple however economically damaging choices. A lot of the property-related measures being mentioned would ship minimal income, take years to implement and undermine confidence within the housing market.”
Davies stated the federal government ought to focus as a substitute on big-ticket reforms able to producing important revenue extra shortly, even when which means making politically troublesome selections.
Davies added: “Tinkering with the housing market is not going to ship what the federal government wants.
“If ministers need development, they need to take a look at broader, bolder measures that may genuinely increase income and assist funding. Small, piecemeal tax modifications will simply add uncertainty, harm confidence and gradual exercise at precisely the fallacious time.”
Housing transactions are a serious driver of financial exercise, supporting jobs in building, conveyancing, surveying, elimination companies, house enchancment and retail – a slowdown would have an effect on all of them.
Regardless of the Chancellor decides, IMLA known as for readability, as uncertainty is slowing down the housing market, in line with reviews.
Davies stated: “Uncertainty is deeply damaging to enterprise confidence.
“We could not like each determination the Chancellor takes, however the market will reply much better to readability and conviction than to dithering and indecision.”
The Autumn Price range will happen on Wednesday, 26 November 2025.
