“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.
August’s annual 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 in the pace of growth, 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.