Chancellor Rachel Reeves\u2019 Budget announcement in two weeks\u2019 time is likely to be a \u2018turning point in either direction\u2019.<\/p>\n
That is according to Tarrant Parsons, RICS head of market research and analysis, who responded to the data showing that demand and sales have stalled ahead of the Autumn Budget.<\/p>\n
In October the number of new enquiries stood at a net -24%, while agreed sales was a net -24% \u2013 both of which reflected a worsening reading compared to September.<\/p>\n
Parsons said: \u201cThe housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence. Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.<\/p>\n
\u201cThe coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction. Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.\u201d<\/p>\n
In the Autumn Budget on November 26 many surveyors fear increased property-related taxation, including possible changes to stamp duty, capital gains, and inheritance tax.<\/p>\n
Higher-end and London properties appear especially sensitive, with multiple agents reporting stalled activity above \u00a31 million.<\/p>\n
Paresh Raja, CEO of Market Financial Solutions, said: \u201cThis is clearly going to be a loaded Budget. Rachel Reeves has issued some warning shots and, for the second year in a row, it looks like various tax hikes could steal the headlines on 26th November.<\/p>\n
\u201cFor the property market, there has been a lot of conjecture as to what will be in the Chancellor\u2019s favour red briefcase. For landlords, property investors, and the brokers working with them, there are some key policies to watch out for: an increase to income tax (though touted to be offset for many by a cut in national insurance, this will not be true for landlords); reforms to stamp duty, which have been speculated over wildly; extending capital gains tax to include primary and secondary homes; and potential changes to planning laws and the house-buying process.<\/p>\n
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\u201cAt this stage, adding to the speculation is pointless. Across the property market, from lenders and brokers to buyers and sellers, it is a question of adapting quickly to whatever the Chancellor announces. What\u2019s more, though inertia has started to set in as the Budget approach, I would expect a flurry of activity afterwards. Indeed, amidst all the predictions about the tax blows that could land, the reality is typically less painful than the pre-speech doom-mongering.<\/p>\n
\u201cUltimately, we have to be ready to take any changes in our stride and, if the Bank of England does come through with multiple cuts to the base rate in the coming year, then there is every reason to believe the market will remain buoyant. After all, even with a great deal of political and economic turbulence this year, house prices have continued to rise and buyer demand for UK property remains strong.\u201d<\/p>\n
New vendor instructions posted their third consecutive negative reading at -20%, the weakest since 2021.<\/p>\n
Appraisal activity \u2013 a lead indicator for future stock \u2013 softened to -37%, implying fewer listings as potential sellers adopt a \u201cwait-and-see\u201d approach.<\/p>\n
Despite this negativity, a net +7% anticipate increased activity in 2026.<\/p>\n
Tom Bill, head of UK residential research at Knight Frank, said: \u201cBy the time the Budget arrives, the housing market will have endured three months of intense speculation around property taxes.<\/p>\n
\u201cUnless there is a pressing need to move, some buyers and sellers have understandably hit the pause button.<\/p>\n
\u201cWhile there will be clarity after 26 November, the wide range of tax rises on the table are likely to dent sentiment and put downwards pressure on house prices.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Chancellor Rachel Reeves\u2019 Budget announcement in two weeks\u2019 time is likely to be a \u2018turning point in either direction\u2019. That is according to Tarrant Parsons, RICS head of market research and analysis, who responded to the data showing that demand and sales have stalled ahead of the Autumn Budget. In October the number of new […]<\/p>\n","protected":false},"author":1,"featured_media":5502,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n