Zoopla: As buyers wait for the Autumn Budget, house sales decline for the first time in two years

As the housing market experienced an early Christmas slowdown, the average price of a house in September was andpound;270,000, down £1,000 from August, according to Zoopla

The housing market seems to have entered an early Christmas lull, which is bad news for sellers.

A market slowdown typically occurs six to eight weeks prior to the holiday season, but according to new data from Zoopla, there have been rumors that property taxes may be altered in the Autumn Budget, causing the slump to occur earlier.

House prices decreased to an average of 270,000 1,000 less than they were in August, while the number of new sales agreed in the four weeks leading up to October 19 fell by 3%, resulting in the first annual decline in new sales agreed in two years.

As a result, the annual change in home prices from August to September is now only 1.3 percent, as opposed to 1.4%.

In October, there was an 8% decline in buyer demand, but there was a 7% increase in the overall stock of available homes because buyers still have a lot more options.

According to Zoopla, the decline is caused by rumors that a change to property taxes may be included in the upcoming Autumn Budget, making Brits more hesitant to begin a real estate transaction and instead choose to wait and see.

The slowdown is particularly concentrated in the upper end of the housing market, where demand, listings, and sales of properties valued at £500,000 or more have sharply decreased due to rumors that the chancellor is targeting them.

The south of England has been most severely impacted, with house price growth essentially stalling throughout all southern regions due to the higher-value properties that are more prevalent there.

There are properties in the sales pipeline valued at £100 billion.

A historically large completion pipeline has been created by two years of increased sales activity, even though the market for new property sales is slowing due to a glut of properties waiting to be purchased.

According to Zoopla, nearly 350,000 homes totaling more than £100 billion are presently moving through the sales pipeline, the highest number in more than four years.

On average, a purchase takes five to six months from the time of initial listing to the transfer of ownership.

In the meantime, it now takes 37 days on average to find a buyer, which is about 10% longer than it was a year ago. In the south of England, sales now take a lot longeran average of 45 days in London.

"The housing market is experiencing a slowdown in activity, but there are still serious sellers looking to buy homes and secure their next home purchase," stated Richard Donnell, executive director at Zoopla.

"Purchasing a home is a drawn-out process, and there are a record number of properties for sale, indicating that many buyers are searching for their next residence. Compared to the impact of the 2022 mini-Budget, the slowdown is mild.

"Early-stage buyers are becoming more cautious when making new purchases before the budget, especially when purchasing more expensive homes. House prices are expected to close the year 1-1.5% higher than they were at the beginning of 2025, and the housing market is still on track for the highest sales since 2022. A "

"The market has clearly slowed in recent weeks, but much of this reflects a natural pause as buyers and sellers understandably take stock ahead of the November Budget," stated Guy Gittins, CEO of London real estate firm Foxtons.

"We anticipate a swift return of confidence, especially in London, where well-funded buyers are still active and underlying demand is still robust, once there is more clarity regarding taxes and economic policy. Therefore, rather than representing a fundamental change in market dynamics, the current slowdown should be seen as a brief pause. The "

Where has the biggest increase in home prices occurred?

With the exception of the South East, where prices are flat, and the South West, where prices have dropped by 0.1 percent, all UK regions have higher house prices than they were during the same time last year.

Northern Ireland has experienced the largest increase in home prices in the United Kingdom, with prices rising by 7.6% since the previous year. That is more than twice as quick as the second-fastest region, the North West, where prices increased by 3% annually.

Compared to the rest of the country, the growth of house prices in the south of England has been much slower. With a pitiful 0.8%, the East of England was the southern region with the fastest growth.

Below is a comprehensive list of the areas where home prices are rising the fastest.

Zoopla (October 27).