The UK housing market is exhibiting signs of a slowdown, with recent data indicating diminished activity from both buyers and sellers. A report from Rightmove reveals that in September, the number of new buyers reaching out to estate agents and new sellers entering the market decreased by 5% compared to the same month the previous year. While Rightmove characterizes the market as still “resilient,” it notes that the typical increase in activity following summer is not occurring as expected.
The decline in activity may be influenced by speculation regarding potential tax increases in an upcoming budget announcement by Rachel Reeves. The prospect of higher costs for purchasing or maintaining property has led some potential movers, particularly in southern England, to adopt a wait-and-see approach. In a recent interview, Reeves indicated a focus on ensuring that those with more substantial means contribute a fair share to taxes and mentioned plans to address inflation in her next budget.
Among the measures under consideration by the Treasury is the introduction of a new tax on home sales exceeding £500,000 and the removal of capital gains tax exemptions for primary residences valued over £1.5 million. There is also ongoing pressure from Labour MPs for a comprehensive overhaul of property tax structures.
Despite a slight increase in the average price of new properties coming to market in October—up by 0.3% to £371,422—this rise is below the average for October in the past decade. Some experts attribute the recent slowdown to a strong performance in September 2024, marked by an earlier Bank of England interest rate cut, creating a challenging comparison for this year.
Experts express concern that both buyers and sellers are hesitant, and the speculation surrounding the budget has further exacerbated this uncertainty. In response, a spokesperson from the Treasury stated that efforts are being made to facilitate housing development and ensure economic growth, emphasizing the need to balance budgetary requirements with public service funding.
Source: https://www.theguardian.com/money/2025/oct/20/housing-market-slows-reeves-increase-property-tax