RSM UK is calling on the government to prioritise a review of tax policy to stimulate the UK's housing market ahead of the Autumn Budget. This comes as the latest UK House Price Index shows average house prices decreased by 0.2% on a seasonally adjusted basis from June to July 2026.
The average UK house price in July 2026 was £273,000, an annual increase of 1.4%. This marks a slowdown from a 2% annual increase last month and 3% the month prior. London saw a 3.3% annual decline in average house prices, with Stacy Eden, National Head of Real Estate at RSM UK, noting "continued disparities between the North and the South."
RSM UK suggests that London is particularly affected by Stamp Duty Land Tax (SDLT) and high mortgage rates. The firm recommends a reform of SDLT to reduce "penal rates at the top end of the market," which could help first-time buyers and other consumers afford house purchases.
The Building Safety Levy (BSL) is set to come into force on 1 October 2026, adding a tax on new residential buildings in England. RSM UK warns this could further challenge the viability of new developments. The firm also advocates for the reintroduction of multiple dwelling relief, abolished in 2024, to support the build-to-rent sector.