Could property tax reform be an opportunity for estate agents?

The housing market has been on a great run over the last 2 years with sales agreed rising steadily. 

However, uncertainty over possible tax changes in the Budget means market activity is slowing. 

Recent speculation about scrapping stamp duty in favour of an annual property tax has captured headlines, as well as a possible revaluation of council tax bands and charging capital gains tax on property sales. Speculation over tax changes is an annual occurrence and nothing may change.  

For estate agents, the real story isn’t just about taxes, it’s about unlocking transactions today and new revenue potential in future.

Stamp duty talk sparks interest

Talk of replacing stamp duty with an annual property levy is generating noticeable interest among buyers, particularly in the mid-market. While any policy change remains uncertain, the discussion itself presents a clear opportunity for agents to engage with consumers and build trust.

Research shows that a buyer purchasing a £300,000 home could save around £5,000 upfront if such a scheme were introduced, as no annual tax would apply at that level. Homes above £500,000 would begin to attract a yearly charge, estimated at £2,700 for a £500,000 property, £8,180 for £1 million, and £12,270 for £1.5 million. Over 20 years, that could equate to roughly 10% of a property’s value in tax for top-end homes.

Estimated annual property tax impact (Zoopla research):

Rather than signalling immediate change, this discussion is prompting buyers to pause and consider their next move. Recent data shows enquiries for homes over £500,000 have dipped 4%, and 11% for properties above £1 million, with listings in the £1 million+ range down 9%.

For agents, the opportunity lies in guiding serious sellers through this uncertainty and helping buyers make informed decisions. Engaging proactively can help maintain confidence in the market, encourage thoughtful moves, and reinforce the agent’s role as a trusted advisor - even if the rules themselves remain unchanged.

Opportunities for agents

More active buyers: Lower upfront costs could encourage buyers who have been waiting on the sidelines to re-engage. Agents who understand the nuances of the new tax landscape can advise clients strategically; whether on timing moves or understanding long-term tax implications.

Upselling expertise: Annual taxes introduce new calculations for buyers and sellers alike. Agents can become indispensable by modelling scenarios, highlighting value, and offering bespoke advice on purchase timing, downsizing, or upsizing.

Market differentiation: Those agents who embrace reform early and communicate the benefits clearly could capture market share. It’s a chance to position your agency as an authority on navigating the next era of property transactions.

The supply challenge

One caveat: unlocking moves is only half the story. The UK housing market has a chronic shortage of smaller homes, which could limit downsizing options for some households. 

Agents who can identify or even incentivise alternative property solutions, such as new-builds, conversions, or multi-generational arrangements, will be best placed to benefit from reform-driven mobility.

Uncertainty may dominate headlines in the short term, but there’s a bright horizon for estate agents who think strategically. 

Well-implemented reform could make moving easier, encourage more frequent transactions, and ultimately increase agency revenues. 

For those willing to adapt, educate clients, and navigate the changing market with confidence, the coming years could prove highly profitable.

In other words, property tax reform isn’t just a story about policy, it’s a story about opportunity. The agents who act first, and act smart, will be the ones who thrive.