Estate agent says one‑fifth of London house sales fell through amid Budget tax rumours

An estate agency group said nearly one in five agreed property sales in August collapsed after prospective buyers pulled out amid speculation about tax changes ahead of the Autumn Budget.

Chancellor Rachel Reeves announced the Budget will be held on Nov. 26 rather than in October, extending a period of uncertainty to 84 days and, according to the agent, fuelling a cautious stance among buyers who are awaiting clarity on potential changes to stamp duty and capital gains tax.

Martyn Gerrard Estate Agents, which operates 15 offices in London, said buyers were withdrawing within a week or two of offers being accepted. Simon Gerrard, the firm's chairman, said "the panic, confusion and uncertainty sparked by these potential new taxes have caused almost 20 per cent of our agreed sales in August to see the buyers withdraw only a week or two later."

Gerrard described the trend as a clear sign that the policies being discussed would damage the housing market and indicated a lack of understanding of market dynamics. He said the withdrawals were concentrated in London, where buyers were adopting a "wait and see" approach in the face of media and market speculation.

There has been widespread reporting in recent weeks that Labour could consider changes to stamp duty and capital gains tax as part of broader tax policy reviews. Estate agents and market participants frequently cite tax uncertainty as a factor that can slow transaction volumes, particularly in higher-value markets where fiscal costs and timing weigh heavily on buyer decisions.

The estate agency’s figures describe agreed sales — transactions that have passed offer stage but are not yet completed — and should not be conflated with completed sales figures published in official property market statistics. Martyn Gerrard did not provide a breakdown of how many of the withdrawn offers were from first-time buyers, relocators or investors.

Industry groups and analysts will be watching official Budget proposals and any accompanying timelines for implementation closely, as the period between announcement and enactment can affect buyer behaviour and the speed of market recovery. For now, according to Martyn Gerrard’s account, the extended window before the Budget has prompted an uptick in aborted sales and increased caution among prospective purchasers in London.

Estate agents across the market have previously argued that sudden or unexpected tax changes can disrupt transactions by altering the financial calculus for buyers and sellers, though outcomes vary by region, price band and type of purchaser. With the Budget date confirmed for late November, market participants said attention will turn to the government's published proposals and any guidance on transitional arrangements that could influence decisions already underway.