Property Sales Slump as Home Buyers ‘Wait and See’ Ahead of Budget
Zoopla reports first annual fall in agreed property sales in two years as market pauses for clarity on economic policy
The UK housing market has entered a temporary slowdown, with the number of agreed property sales falling for the first time in two years, according to the latest Zoopla House Price Index (HPI).
The report shows that sales agreed are down 3% year-on-year, while buyer demand has dropped 8% as cautious purchasers adopt a “wait and see” approach ahead of next month’s UK Budget.
Zoopla attributes the early autumn slowdown to growing uncertainty around potential tax and housing policy changes, as speculation continues over possible stamp duty and property tax reforms.
Market Activity Slows — But the Pipeline Remains Strong
While activity has softened, the housing market still retains considerable momentum. Two years of elevated sales have built up a pipeline of nearly 350,000 homes currently progressing to completion — the largest in more than four years.
The data also reveals significant regional variation:
- Southern England has seen house price growth stall, reflecting weaker demand and greater affordability pressures.
- In contrast, Scotland, Wales, and northern England continue to see average price growth of over 2%, underpinned by more affordable housing and resilient local economies.
Richard Donnell, Executive Director at Zoopla, commented:
“This slowdown is modest and far less severe than the impact of the 2022 mini-Budget. What we’re seeing is early-stage buyers exercising caution ahead of the upcoming Budget — particularly those looking at higher-value homes.
The current pause should be viewed as temporary rather than the start of a major correction.”
Experts Expect Market Confidence to Return After Budget
Property experts say that once the Chancellor’s Budget provides clarity on taxation and fiscal policy, buyer confidence is likely to rebound quickly, especially in key urban markets.
Guy Gittins, CEO of Foxtons, said:
“While the market has clearly slowed in recent weeks, this is a natural pause as buyers and sellers take stock ahead of November’s Budget. Once there’s more certainty, we expect activity to recover swiftly — particularly in London, where demand remains strong and well-funded buyers are still active.”
Both Zoopla and Foxtons agree that the UK housing market remains fundamentally sound, with no signs of widespread distress among sellers. The combination of stable mortgage rates, strong buyer interest outside the South, and a large volume of homes in the sales pipeline suggests that the current dip is a temporary pause, not a downturn.
