“It’s definitely worth looking at UK property taxes,” he added.
The introduction of a National Insurance levy for landlords, removal of the capital gains tax relief on selling pricier homes, the abolition of stamp duty, and replacement of council tax with a national property tax are some of the options reportedly being discussed.
Experts’ views on the changes are mixed, with some arguing that replacing stamp duty in particular could speed up the housing market but cost billions in lost tax revenue.
The average UK home now costs £271,079, according to Nationwide’s data, which is based on its own mortgage activity. This does not include buyers who purchase homes with cash, or buy-to-let deals. Cash-buyers account for about a third of housing sales.
Nationwide said the 2.1% rise in the year to the end of August is a slowdown from the 2.4% annual growth recorded in July.
This rate of growth is the same as Nationwide recorded in June this year. The last time house price growth was this slow was in July 2024.
Despite the drop, Mr Gardner said housing remains unaffordable for many buyers.
“House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years,” he said.
