House prices at a standstill as buyers fear more property tax hikes in Burnham's Budget

House prices remain at a standstill as buyers worry about property tax hikes in Andy Burnham's Budget later this month.The average property price is now £298,441, according to figures from Lloyds Bank, compared to £298,395 in August – a rise of less than £50. Prices were also unchanged annually compared with September last year.The slowdown is being attributed to higher mortgage rates, as well as concerns about property tax rises in the Budget on October 28. Average mortgage rates broke through the 6 per cent barrier for the first time in three years earlier this week as lenders continue to hike prices on inflation concerns. Buyers are also holding off making property decisions until after the Budget, according to experts. Tom Bill, head of UK residential research at estate agent Knight Frank said: 'This month’s Budget adds to the uncertainty as buyers and sellers wonder which of the recurring tax rumours proves to be true. 'We think downward price pressure will continue during the final months of the year.' Standstill: Prices were unchanged annually compared with September last year. The average property price is now £298,441Burnham has previously advocated a ‘land value tax’ that would replace stamp duty with an annual levy paid by homeowners based on the value of the land their property is built on.And the Chancellor John Healey is also said to be considering lowering the threshold for paying the incoming mansion tax to £1.5million, when it comes into force in 2028.Tomer Aboody, director of specialist lender MT Finance, said: 'September's lack of movement in pricing comes as no surprise. 'With Andy Burnham pointing to further and harsher taxes both on homeowners and landlords, any buyers out there are proceeding with caution. 'Disappointingly, trying to squeeze every home owner as much as possible isn't the way to encourage growth in the economy and help it flourish.'From April, landlords face higher rates of income tax of 22 to 47 per cent on rental income.About 93,000 landlords quit last year, with a further exodus forecast for this year.Where prices are rising and fallingPrices are rising steadily in Scotland and northern England but falling across London, southern England and East Anglia.Prices in Scotland are up 3.4 per cent over the past year to an average of £223,330.Prices in the North East are up 2.4 per cent, while the North West saw prices rise 1.9 per cent year-on-year.The West Midlands was the only other English region to see positive annual growth, at 0.8 per cent, with the average property value of £260,892.Wales also saw average house prices rising 1.2 per cent, with the typical property now valued at £231,287. By contrast, Greater London recorded the largest annual decline, down 2.2 per cent year-on-year to £531,548, closely followed by the South East, down 2.1 per cent to £380,829. Prices in Eastern England fell 1.6 per cent to £330,151.'It’s in these southern areas, where prices are higher, that buyers are facing the biggest affordability squeeze,' said buying agent Jonathan Hopper of Garrington Property Finders.'With mortgage interest rates now at their highest level in three years, lenders won’t lend as much money to movers as they would have done before.'This is forcing those who need to move to reduce their budget and prompting many of those who want to move to sit on their hands.'How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage