Latest: September property market report

There are a few signs that autumn is on the horizon (Halloween decorations in the shops, anyone?) and the change in season heralds a change in property focus. September is a peak period for home movers, so what kind of market awaits buyers, sellers and renters? Here’s how August shaped the property industry.

In August, English homeowners and movers were mulling over a proposed (and radical) new approach to property tax. According to leaked information, the Government is considering scrapping stamp duty, which is a land tax currently paid by property purchasers. One idea is for a new annual property tax that would be paid by the seller when they move home, applying to homes worth more than £500,000. 

Sellers to take up the tax mantle?

It is thought a new tax would be proportional, with the seller paying a percentage of a property’s value above £500,000 every year. Initial thoughts suggest additional purchases would continue to fall under the current stamp duty system. A stamp duty change in England is not the only proposal.

Distant tax dreams

Labour is thought to be musing the idea of introducing a mansion tax, aimed at properties worth £1.5 million or more. There’s also talk of ditching council tax. This could be replaced by a local property tax to be paid for by the homeowner and not the residents. A change of this nature would affect rented properties most substantially, with a landlord picking up the bill.

While the above news generated some interesting headlines, we are realistically years off reforms of this magnitude. We may know more in the coming Autumn Budget in late October/early November. For now, it’s a case of ‘as you were, nothing has changed’. 

Those in Wales and Scotland may be wondering whether their property taxes will change too. There are no current plans to amend or abolish Land Transaction Tax (LTT) in Wales and Land and Buildings Transaction Tax (LBTT) in Scotland. Both countries saw changes to additional purchase property taxes in December 2024.

Early August saw the Bank of England reduce the base rate once again. The 0.25% decrease took the rate from 4.25% to 4%. Borrowers with tracker and variable rate mortgages broadly found their repayments dropped an average of £15 a month.

Buyer looking to secure fixed rate mortgages also had good news. Moneyfacts data released in August found the average 2-year fixed rate had fallen to 4.99%. This is the lowest rate in the last three years. 

Fixed-rates cheaper than in 2024

Rightmove added to the picture by saying most fixed rate mortgages had become cheaper. When compared to a year ago, 2-year fixed and 5-year fixed are 0.73% and 0.35% less expensive, respectively. It added that 2-year and 5-year fixed mortgages were available at almost identical rates.

August brought a fresh look at the rental market. HomeLet’s latest rental index revealed rents increased by 0.4% in the last monthly reporting period. This leaves the UK’s average monthly rent at £1,313.

New tenancies costing more

HomeLet’s regional monitoring gave us a more in-depth snapshot of rental value fluctuations. Monthly rents increased the most in Scotland (2.1%) and the North East (1.2%). The smallest increases of 0.1% were tracked in the South West, the East of England and the South East. 

New analysis released in August revealed rental value movement hasn’t phased tenant demand. The latest Pegasus Insight Landlord Trends report, reflecting Q2 2025, found 71% of landlords rated tenant demand in their area as ‘strong’. With this description, 33% said it as ‘very strong’, while 39% described demand as ‘quite strong’. 

If you would like to know more about your local property market, please get in touch.