Introduction
The UK housing market is facing significant pressures, as leading industry body Propertymark has warned that tax burdens on landlords are restricting mobility and affordability for homebuyers.
Despite recent reductions to the Bank of England’s base rate, Propertymark asserts that structural issues, including rising house prices, high rental costs and outdated property tax thresholds, continue to hamper both property purchases and the broader market recovery.
The organisation has called for urgent reforms to make taxation more responsive to current market conditions and to support both landlords and aspiring homeowners.
Overview of Housing Market Trends
Propertymark’s latest analysis provides a detailed assessment of current market challenges. While welcoming recent moves by the Bank of England to reduce interest rates, the organisation stresses that lower mortgage rates alone are insufficient to address entrenched obstacles in the market.
According to Propertymark, barriers persisting for many aspiring homeowners include rapidly increasing house prices, deposit requirements, and stagnant wage growth. High rental outgoings further limit the ability of potential buyers to save for deposits, exacerbating the affordability crisis.
Tax Policy Changes and Market Effects
Analysis from Propertymark highlights the impact of temporary property tax adjustments during and after the pandemic. Official data shows that 1,073,308 property transactions took place in the UK at the pandemic’s peak in 2021, compared to 920,052 in 2025 a reduction of 14.3 per cent.
Temporary increases to the nil-rate band for Stamp Duty Land Tax in England and Northern Ireland between 2020 and 2021, as well as threshold rises in the equivalent Scottish and Welsh property taxes, supported the market during the pandemic.
However, the withdrawal of these measures has coincided with a notable decline in sales activity.
Implications for Homebuyers
Propertymark has drawn attention to the impact of taxation policy on the ability of first-time buyers to access homeownership. The organisation contends that the lack of alignment between property tax thresholds and rising house prices has driven up the overall tax burden on buyers.
Nathan Emerson, Propertymark’s chief executive, stated, “Property tax thresholds have failed to keep pace with rising house prices and wage growth over the past decade, increasing the tax burden on buyers.”
Emerson has called for reforms to property taxation to reduce upfront costs, improve mobility within the market, and support prospective first-time buyers.
Landlord Pressures and Rental Supply
On the lettings side, Propertymark attributes a shortage of rental properties and rising rents to multiple factors, notably higher mortgage rates, increasing costs, and additional taxes imposed on landlords in recent years.
These combined pressures have reportedly led some landlords to exit the sector, further reducing property supply and contributing to escalating rents. The shortage of available rental homes has intensified competition, making it even more challenging for private renters to transition into homeownership.
Propertymark’s Call for Reform
In light of current market conditions, Propertymark is urging government action to overhaul the property tax system in the UK. The organisation recommends reforms that would better reflect today’s property values and wage levels, aiming to make the system fairer and more responsive.
Alongside taxation reforms, Propertymark also advocates targeted support for individuals struggling to save for deposits and measures to stimulate increased housing supply. The aim, according to Emerson, is to make homeownership an attainable goal for more people across the country.
Final Summary
Propertymark’s latest review underscores the considerable constraints that current property tax policies place on the UK housing market. Figures indicate a tangible decline in property transactions since post-pandemic tax support measures were lifted, while both homebuyers and landlords face mounting financial pressures.
The trade body is calling for reforms to ensure taxation policies are updated to suit modern market realities, highlighting the interconnected roles of affordability, supply, and regulatory guidance.
As economic conditions continue to evolve, effective tools and informed advice, such as those provided by property specialists and financial platforms like Pie, will remain vital for buyers, landlords, and agents.
