Zoopla: Southern England's house prices decline for the first time in eighteen months

Prior to the Budget, Zoopla revealed lower prices for the first time in eighteen months, which could be advantageous for home buyers due to a purported andlsquo;property tax

Due to increased stock on the market and concerns about the budget, southern England's house prices fell for the first time in 18 months.

According to Zooplas' most recent House Price Index, prices in London, South East, and South West England decreased by as much as 0.2% in the year ending in November.

Chancellor Rachel Reeves was expected to announce a new annual tax on homes valued at more than £500,000 in the Budget, according to pre-budget rumors. Although no such announcement was made, it ultimately caused prices to decline in certain areas.

According to Zoopla, one of the primary reasons for the decline in home prices in southern England was speculation that a property tax might be implemented, as buyers waited to find out.

According to Zoopla, there was a 12% decrease in sales agreed upon in the four weeks leading up to November 23 compared to the same period last year, which caused prices to decline.

All other British regions saw an increase in house prices in the year ending in November, but their prices remained more stable.

North West England saw the largest price increase (2.9 percent), followed by Scotland (2.7 percent) and North East England. Prices increased by 1.3% in Scotland, Wales, and England.

This indicates that the average cost of a home in the UK is currently 270,200.

According to Zoopla, the removal of the threat of additional taxes will boost buyer demand at the beginning of 2026, with sellers in southern England expected to benefit the most.

Compared to the UK average of 24 percent, 51 percent of homes in London and 34 percent in South East England are currently for sale for more than 500,000.

The "Budget bark was worse than the Budget bite" for the real estate market, according to Zoopla executive director Richard Donnell.

"Our data indicates that there is still a strong underlying demand to relocate. With more certainty, we anticipate a resurgence of housing market activity that continues into the new year, with households that had put off moving in recent months coming back with more assurance. A "

Fiscal drag from stamp duty.

According to Zoopla, frozen stamp duty thresholds are causing a "fiscal drag" effect in which buyers are increasingly required to pay higher amounts due to rising home prices.

The Homeowners Alliance, a website that offers property advice, is among the experts who have advocated for the thresholds to increase in proportion to home prices.

Stamp duty is currently waived for the first 125,000 of a home, 2 percent for the portion between 125,001 and 250,000, and 5 percent for the portion between 250,001 and 925,000.

For the first 300,000 of a property, first-time buyers pay no stamp duty; for the remaining 300,000 to 500,000, they pay 5%.

According to Zoopla, since 2019, the percentage of homes purchased by current homeowners where stamp duty exceeds 2.5 percent of the purchase price has increased from 21 percent to 33 percent.

In the days leading up to Christmas, should you buy or sell?

Although there are no hard and fast guidelines, knowing when is the ideal time to purchase a home is crucial.

Though this isn't always the case, spring is typically thought of as the best time to purchase a home because more properties are anticipated to be available.

According to Paula Higgins, the founder and CEO of HomeOwners Alliance, a website that offers property advice, buyers may be able to get a good deal in the run-up to the new year because sellers are delaying pre-Budget and pent-up demand hasn't yet begun, which means there isn't much competition.

"Sellers who have been on the market for several weeks are much more amenable to compromise. This is typically the case in a typical year, but given the amount of speculation surrounding the budget and the late nature of the year, it is even more true this year. Get a deal now before everyone rushes back into the market in January. The "

However, Higgins stated that this also applies to sellers. Those who list their home now may have an advantage over those who wait until the following year.

"Take your pictures before the Christmas decorations are put up if you plan to list; otherwise, your house will appear outdated come January. The "