Taxation of property

Property Outlook

The housing market is continuing to perform exceptionally well, defying economic conditions. The October 2021 Budget and March 2022 Spring Statement have come and gone without any adverse property tax changes; in particular, property income has avoided the 1.25 percentage point tax rate increase applicable to most other types of income, including dividends.

However, three recent Bank of England base rate increases in the space of just three months have pushed up borrowing costs. This, together with the current high rate of inflation, may well mean more modest house price growth over the next twelve months.