Property Buyer Activity Stalls on Budget Concerns

Zoopla has reported that usual December slowdown in property sales has come early as both buyers and sellers ‘put the breaks on early’ to the point of ‘stalling the engine’ on fears for property taxes in the Autumn Budget on 26^th November.

Pre-Festive Season property sales usuall fall in late November and through December as buyers/sellers both prefer to wait until the new year.

This year the slowdown has come early, with Zoopla suggesting that buyer demand/searches have fallen 8% and agreed sales (sunject to contract) have fallen by 3% already.

Fears for a ‘wealth tax’ on higher value properties, changes to stamp duty, with no incentives for first time buyers and fears that landlords are going to be hit with further taxes having altreday suffered with

1. Renters Rights Act receiving Roiyal Assent i.e., becoming law today.
2. Funished holiday let advantages gone.
3. Higher stamp duty for second homes.
4. Capital gains tax annual allowance reduced to just £3,000 pa.
5. Energy Performance Certificate requiements to improve energy efficiency to a minimum grade C and ideally A or B, forcing landlords to spend £000s on insulation, new heating systems etc when private homeowners do not have to do the same.
6. Restrictions on offsetting property expenses with no relief at 40% or 45% anymore, and only a 20% tax credit available.

All of the above has stalled the market early and is even pushing property prices down.

Comment

Having ourselves spoken with two estate agents in South West London last week, they confirmed that the number of properties for sale is at its highest level for 9 years, as landlords are trying to sell up and leave the market but buyers are holding back fearing higher taxes.  It is therefore a 'buyers market' at present where a ‘cheeky offer’ may secure nuyers are great property deal.

The South East is suffering as property prices are generally higher that the rest of the country but have stalled in even fell in 2025 but in the Midlands, North, Scotland and Wales, whilst slower, property values are still 2-5% higher on the year proving that there is some demand.

All eyes now on the Budget.