Rachel Reeves is set to present her Budget in November. (Image: Getty)
An expert has said that tax changes being considered by Rachel Reeves would be the final nail in the coffin for property investment. The Treasury is believed to be examining options for property taxes ahead of the Budget - set to be presented by the Chancellor on November 26 - which, specialists suggest, could include a new 0.54% levy on homes sold for more than ￡500,000, the application of national insurance to rental income and a possible overhaul of council tax.
Charlie Newsome, Divisional Director at Rathbones, said: “Far from being ‘safe as houses’, the investment case for residential property has shifted dramatically. Slower price growth, higher borrowing costs and increasing regulation have combined to erode the appeal of property as an asset class. A new property tax could be the last nail in the coffin for property’s status as a viable investment and cause potentially tens of thousands of people planning for retirement to rethink their strategy."
Article continues belowADVERTISEMENT
Get Quote
Undo
DON'T MISS
Powered by
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves will torpedo trust if she breaks major tax promise
Brits raid pension pots as minister doesn't rule out Rachel Reeves Budget move
DWP announces how many will be taxed on State Pension in 2026
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Key pension scheme 90% of employers believe Rachel Reeves will 'likely' target in Budget
Rachel Reeves calls Reform a ‘clown show' - but her latest pensioner tax raid is a circus
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Rachel Reeves set to 'tax living daylights' out of Brits as Mel Stride issues warning
The legal HMRC trick to increase your tax-free personal allowance to ￡20,070
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves will torpedo trust if she breaks major tax promise
Brits raid pension pots as minister doesn't rule out Rachel Reeves Budget move
DWP announces how many will be taxed on State Pension in 2026
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Key pension scheme 90% of employers believe Rachel Reeves will 'likely' target in Budget
Rachel Reeves calls Reform a ‘clown show' - but her latest pensioner tax raid is a circus
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Rachel Reeves set to 'tax living daylights' out of Brits as Mel Stride issues warning
The legal HMRC trick to increase your tax-free personal allowance to ￡20,070
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
READ MORE: Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
READ MORE: Rachel Reeves sparks panic as firms refuse to hire new staff over tax raid fears
The appeal of property as an asset class is being eroded, an expert has suggested. (Image: Getty)
He added: “A tax that scales with property values risks deepening the housing crisis.
"It could even create the perverse outcome where less well-off homeowners in deprived urban areas where house prices are high are penalised more than wealthy homeowners in rural areas, where values are lower.
Powered By
10 Sec
London protests: Tommy Robinson addresses crowds
Next
Stay
“While second and holiday homes may still hold lifestyle value, their investment appeal has weakened significantly.
Sponsored
Read More
She’s 75, She’s 78 – Their Handmade Jewelry Is 80% Off
Undo
"By contrast, those seeking dependable long-term returns may be better served by a more balanced approach that includes equity markets, which have consistently outperformed property in recent years.”
Wealth managing firm Rathbones said it has seen a "marked increase" in clients with property portfolios "expressing concern and seeking guidance on how to react to changing legislation".
This follows "frustration" over recent taxation changes, including reduced stamp duty thresholds and rate increases introduced in April, the firm added.
On Wednesday, the Chief Secretary to the Treasury, James Murray, said the Government would not “respond to speculation” ahead of the Budget and hit out at the previous Conservative administration’s management of the economy.
DON'T MISS
Powered by
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
Millions of workers over State Pension age could be due a pay boost from employer
Rachel Reeves will torpedo trust if she breaks major tax promise
Brits raid pension pots as minister doesn't rule out Rachel Reeves Budget move
DWP announces how many will be taxed on State Pension in 2026
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
Key pension scheme 90% of employers believe Rachel Reeves will 'likely' target in Budget
Rachel Reeves calls Reform a ‘clown show' - but her latest pensioner tax raid is a circus
One San Jose Bank Is Paying Record High Interest Rates - See the ListSavingsPro |
Undo
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Cardiologist: Strong Arms After 50 Comes Down To Thisprimenutritionsecrets |
Undo
Rachel Reeves set to 'tax living daylights' out of Brits as Mel Stride issues warning
The legal HMRC trick to increase your tax-free personal allowance to ￡20,070
MD Reveals: Fighting Dark Spots After 60 Comes Down To This One ThingGundry MD |
Learn More
Undo
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
Doctor Says, "If You Have Uneven Skin or Blotchy Patches, Do This Immediate...Gundry MD |
Learn More
Undo
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Banned For 84 Years; Powerful Pain Reli ever Legalized In CaliforniaHealth Breakthrough |
Click Here
Undo
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
California Legalized Powerful Arthritis Relief Product For SeniorsHealth Breakthrough |
Click Here
Undo
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Here’s The Gutter Guard Price On A 2,000 Sq Ft HomeHomebuddy |
Get Quote
Undo
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
Millions of workers over State Pension age could be due a pay boost from employer
Here’s What US Homeowners Pay For Leaf-Free GuttersHomebuddy |
Get Quote
Undo
Rachel Reeves will torpedo trust if she breaks major tax promise
Brits raid pension pots as minister doesn't rule out Rachel Reeves Budget move
Three San Jose Banks Are Paying Record High Interest Rates - See the ListSavingsPro |
Undo
DWP announces how many will be taxed on State Pension in 2026
New property tax rule could see some Brits pay extra ￡885 - check if you're affected
MD Reveals: Fighting Dark Spots After 60 Comes Down To This One ThingGundry MD |
Learn More
Undo
Key pension scheme 90% of employers believe Rachel Reeves will 'likely' target in Budget
Rachel Reeves calls Reform a ‘clown show' - but her latest pensioner tax raid is a circus
Update in 'raise income tax threshold to ￡20,000 from ￡12,570' plan
Rachel Reeves 8 potential Autumn budget tax hikes - from inheritance to pensions
Rachel Reeves set to 'tax living daylights' out of Brits as Mel Stride issues warning
The legal HMRC trick to increase your tax-free personal allowance to ￡20,070
Massive mortgage hikes loom as experts issue warning over Rachel Reeves's ‘doom budget'
Rachel Reeves 'eyeing up new ￡2bn tax raid' and this time doctors are the target
State Pension to become means tested, experts predict
Plans for millions to get tax cut as people pay 'ridiculous amounts'
Make state pension ‘tax exempt' update as powerful MPs demand new Rachel Reeves answer
Civil servants miss 'shocking' number of work days by calling in sick
Rachel Reeves humiliated as Starmer's latest move shows he's lost all confidence in her
Fears Rachel Reeves poised to raid pensions - but financial expert says she's 'too inept'
Rachel Reeves 'plotting another huge tax hike' in blow to 37 million Brits
Doctor Says, "If You Have Uneven Skin or Blotc...Gundry MD
Undo
Sponsored LinksSponsored Links
Banned For 84 Years; Powerful Pain Reliever...Health Breakthrough
Undo
Sponsored LinksSponsored Links
California Legalized Powerful Arthritis Relief...Health Breakthrough
Undo
Sponsored LinksSponsored Links
Here’s The Gutter Guard Price On A 2,000 Sq Ft...Homebuddy
Undo
Sponsored LinksSponsored Links
He said: “Over 14 years, the last government made wrong choices time and again.
“Their many prime ministers and their many chancellors all embrace the cycle of austerity, debt and decline. We will never repeat that.”
He added: “The Budget the Chancellor delivers in November will be carefully considered and designed to get the balance right between making working people better off, raising enough money to fund our public services and to get the country moving once again, through investment and growth.”
Read next
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy