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UK Homebuyers Hold Back as Berkeley Pushes for Stamp Duty Cuts Before Budget

  • by- Zaid
  • Sep 12, 2026
Berkeley Group has urged the UK government to cut stamp duty as cautious buyers delay purchases and housebuilders slow land buying and construction.
UK Homebuyers Hold Back as Berkeley Pushes for Stamp Duty Cuts Before Budget

London, United Kingdom | September 12, 2026: The UK's housing market is facing another affordability challenge as buyers remain cautious ahead of the government's October Budget, prompting Berkeley Group to call for lower property taxes to revive housing demand.

The London-focused housebuilder has proposed capping stamp duty at 1% for first-time buyers and downsizers and removing the additional 5% surcharge for property investors.


Tax Costs Are Holding Back Buyers

Berkeley said enquiries for homes remain stable, but buyers who are not under pressure to move or do not have ready cash are delaying commitments.

The company believes lower transaction taxes could make it easier for first-time buyers to enter the market while encouraging older homeowners to downsize, potentially releasing more family-sized homes for other buyers.


Builders Are Also Slowing New Supply

The weak buying environment is affecting developers as well. Berkeley and other UK housebuilders have reduced land purchases and slowed construction as affordability pressures, political uncertainty and higher energy-driven costs weigh on the market.

For the property sector, prolonged caution could eventually limit the pipeline of new homes if developers remain reluctant to commit capital to new sites.

 


Investors and Rental Supply Could Also Be Affected

Berkeley argues that removing the 5% investor surcharge could support investment in the housing market and potentially increase the supply of rental properties.

For landlords and property investors, any change to stamp duty would directly affect acquisition costs and could influence decisions on buying additional properties.


Government Has Not Committed to a Tax Cut

The proposal comes ahead of the October Budget, but Prime Minister Andy Burnham has denied plans to reduce or scrap stamp duty in the upcoming budget.

This leaves buyers and developers waiting for greater clarity before making major property decisions.

 


What It Means for the UK Property Market

The situation highlights how taxes, borrowing costs and buyer confidence are now closely linked to housing supply. If transaction taxes remain high while buyers stay cautious, developers could continue limiting land acquisitions and construction.

For buyers, the October Budget could therefore become an important point to watch, particularly for anyone planning a first home purchase, downsizing move or property investment.