UK Housing Market Faces Turmoil as Stamp Duty Hike Looms

Chancellor Rachel Reeves' budget increases stamp duty on second homes, sparking concerns over rental supply and potential buyer rush.

Chancellor Rachel Reeves announced an increase in stamp duty for second homes and buy-to-let properties from 3% to 5%, effective immediately.
The stamp duty changes are expected to push landlords to sell properties, potentially reducing rental supply and driving up rents.
The housing market is experiencing a slowdown in price growth, with house prices rising 2.4% in October compared to 3.2% in September.
Experts predict a rush in property transactions before further stamp duty changes take effect on April 1, 2025.
The stamp duty hike aims to free up 130,000 properties for first-time buyers over five years but faces criticism for potentially exacerbating the housing crisis.