Uncertainty over November’s Price range is prompting many house patrons, significantly first-time patrons, to undertake a “wait and see” strategy. In line with Zoopla’s newest Home Worth Index, this warning has contributed to the primary annual decline in new gross sales agreed in two years, in contrast with October 2023.
The pre-Christmas slowdown within the housing market has arrived six to eight weeks sooner than standard, with purchaser demand down 8% and gross sales agreed down 3% year-on-year. The decline follows a robust ultimate quarter in 2024, when many patrons rushed to finish transactions earlier than stamp responsibility aid resulted in April 2025.
Price range uncertainty drives wait and see strategy on gross sales and purchaser demand
Regardless of seven 7% extra houses on the market than a 12 months in the past, the regional efficiency in gross sales varies. Gross sales are nonetheless up in Scotland (3%), Yorkshire & the Humber (4%), the South West (1%) and the West Midlands (1%). Nevertheless, Southern England and Wales are experiencing a sharper slowdown in new gross sales being agreed, dropping in Wales (9%), the South East (8%), the East of England (6%) and London (5%).
Home value progress has slowed over 2025, at the moment standing at 1.3% which is broadly in keeping with the extent a 12 months in the past. The common UK house is now price £270,000, a rise of £3,600 over the past 12 months.
The slowdown in market exercise is concentrated within the increased gross sales value bands, with a sharper decline in gross sales, listings and purchaser demand for houses priced above £500,000. The drop in new gross sales is most pronounced throughout southern England, the place higher-value properties make up a bigger share of the market. Hypothesis round potential tax reforms in England, together with modifications to council tax, changing stamp responsibility with an annual property tax, and introducing capital beneficial properties tax on purchases over £1.5 million, has prompted early-stage patrons to pause their search till after the upcoming Price range.
This weaker demand and affordability squeeze within the South is instantly impacting value progress. Home value progress has nearly stalled throughout southern areas of England, limiting value will increase. In sharp distinction, value progress stays strong throughout the remainder of the nation, operating at over two per cent in Scotland, Wales and the northern areas of England, broadly sustaining the expansion fee seen final 12 months.
Home value progress stalls within the south and continues throughout remainder of the nation
Whereas the marketplace for new enterprise is beginning to gradual, two years of a sustained improve in gross sales exercise have created a historic completion pipeline. There are actually nearly 350,000 houses, valued at over £100 billion, at the moment working by the gross sales course of, the biggest pipeline in over 4 years (since Could 2021). This backlog displays the truth that it takes 5 to 6 months on common to finish a purchase order, and is sustained by sellers (a lot of whom are additionally shopping for) and powerful first-time purchaser demand, each inspired by latest stability in mortgage charges.
Largest gross sales pipeline for 4 years
Nevertheless, the velocity of discovering a brand new purchaser has decelerated. The common time to promote now stands at 37 days, roughly 10% longer than a 12 months in the past. Gross sales take notably longer throughout southern England, reaching 45 days in London (20% longer than final 12 months). Northern England and Scotland proceed to see the quickest gross sales exercise, a mirrored image of stronger ongoing demand. This regional distinction underlines the significance of sensible pricing for sellers, as houses requiring value reductions sometimes take for much longer to promote.
Richard Donnell, government director at Zoopla, mentioned: “The housing market is experiencing a slowdown in exercise however there are nonetheless critical sellers seeking to purchase houses and safe their subsequent house buy. Shopping for a house is a prolonged course of and there are a file variety of houses on the market which implies numerous patrons on the lookout for their subsequent house. The slowdown is modest and fewer extreme than the affect of the 2022 mini funds.
“It’s early stage patrons adopting a cautious strategy to new purchases forward of the Price range with better warning for these shopping for increased worth houses. The housing market stays on monitor for essentially the most housing gross sales since 2022 and home costs are set to finish the 12 months 1-1.5% increased than the beginning of 2025”.
