The Intermediary Mortgage Lenders Association has warned Chancellor Rachel Reeves against using the housing market as a target for tax rises in November’s Budget.
Any more tax rises in the sector would fail to raise meaningful revenue and could instead choke off economic growth, the association warned.
IMLA estimated that all of the property tax ideas floated so far, including a new annual property tax, council tax reform and capital gains tax on main residences, would together raise less than £6 billion.
Kate Davies, executive director of IMLA, said: “These numbers simply don’t move the dial.
“The Chancellor should resist the temptation to reach for politically easy but economically damaging options. Most of the property-related measures being discussed would deliver minimal revenue, take years to implement and undermine confidence in the housing market.”
Davies said the government should focus instead on big-ticket reforms capable of generating significant income more quickly, even if that means making politically difficult choices.
Davies added: “Tinkering with the housing market will not deliver what the government needs.
“If ministers want growth, they should look at broader, bolder measures that can genuinely raise revenue and support investment. Small, piecemeal tax changes will just add uncertainty, hurt confidence and slow activity at exactly the wrong time.”
Housing transactions are a major driver of economic activity, supporting jobs in construction, conveyancing, surveying, removal services, home improvement and retail – a slowdown would affect all of them.
Whatever the Chancellor decides, IMLA called for clarity, as uncertainty is slowing down the housing market, according to reports.
Davies said: “Uncertainty is deeply damaging to business confidence.
“We may not like every decision the Chancellor takes, but the market will respond far better to clarity and conviction than to dithering and indecision.”
The Autumn Budget will take place on Wednesday, 26 November 2025.
