Zoopla’s newest figures present new gross sales have fallen for the primary time in two years as home value progress slows to 1.3%, roughly according to final yr.
Uncertainty over the November Price range is prompting a “wait and see” method amongst patrons. The pre-Christmas slowdown has arrived early, with purchaser demand down 8% and gross sales agreed down 3% year-on-year.
Price range uncertainty and hypothesis over property tax reforms (together with modifications to stamp responsibility and capital features tax) is performing as a drag on gross sales agreed, particularly for properties priced above £500,000, the research discovered.
Nathan Emerson, CEO of Propertymark: “Whereas a slowdown in new gross sales is to be anticipated forward of the Price range, lots of our member brokers proceed to report robust ranges of motivated patrons and sellers who’re merely pausing for readability moderately than exiting the market altogether.
“Hypothesis round potential modifications to stamp responsibility and capital features tax inevitably creates uncertainty, significantly on the greater finish of the market, however the fundamentals stay secure. Employment ranges are robust, mortgage charges have eased barely, and the general pipeline of gross sales stays strong.
“Hopefully, the chancellor recognises the significance of confidence and stability within the housing sector. Any reforms should present long-term certainty and assist for each patrons and sellers, not short-term measures that danger additional hesitation. The UK authorities has a chance subsequent month to bolster belief and momentum out there as we head into 2026.”
Jeremy Leaf, north London property agent: “It’s truthful to say worries concerning the Price range have prompted extra patrons and sellers to pause earlier than deciding whether or not to proceed with their strikes.
“Nevertheless, that doesn’t inform the entire story. On the bottom, we’ve additionally seen a common insecurity about taking over debt and prospects for the financial system regardless of wage rises nonetheless exceeding house-price progress and inflation.
“Patrons usually are not dashing to make up their minds in view of the appreciable alternative of property accessible too. Luckily, an inexpensive variety of needs-driven patrons nonetheless trying to transfer helps to clarify why we’re discovering the overwhelming majority of gross sales agreed are continuing – albeit extra slowly and a few solely following a little bit value re-negotiation.”
Simon Gerrard, chairman, Martyn Gerrard: “Right here’s the onerous proof exhibiting what we already knew – Labour’s fearmongering about what’s coming within the subsequent Price range has brought about an in any other case booming housing market to contract.
“For a authorities that claims to be relentlessly targeted on financial progress, it has scored a large personal objective with poor messaging that’s unnecessarily spooked the housing market and can undoubtedly have an effect on the broader financial system. We’re now dealing with a number of months of subdued transactions, which is able to solely scale back the general tax take.
“If the federal government may take a pause from actively sabotaging the housing market, it might in a short time return to booming because it was earlier than. That may do extra to spice up revenues for the Treasury than any of the counter-productive measures being mooted to tax our approach out of the present deficit.”
Amy Reynolds, head of gross sales at Antony Roberts: “The housing market is slowing down as we method the Price range – not when it comes to the gross sales we’re agreeing, however when it comes to properties we’re seeing to worth, with different brokers reporting comparable.
“Distributors have opted to not come in the marketplace in October, which is often a busy time of yr for us with the final push earlier than Christmas. Nothing will occur in November, after which we’re so near Christmas it’s onerous to see how a post-budget bounce will have an effect this yr.”
Man Gittins, CEO at Foxtons: “Whereas the market has clearly slowed in latest weeks, a lot of this displays a pure pause as patrons and sellers understandably take inventory forward of the November Price range. As soon as there’s higher readability round taxation and financial coverage, we count on confidence to return shortly – significantly in London, the place underlying demand stays robust and well-funded patrons are nonetheless energetic. The present slowdown ought to due to this fact be considered as a short lived pause moderately than a basic shift in market dynamics.”
Matthew Thompson, head of gross sales at Chestertons: “Many patrons have paused their property search forward of the November Price range. Uncertainty over potential tax modifications is holding again exercise but when the bulletins carry readability, confidence may return shortly and create an unusually busy finish to the yr.”
