UK Housing Market Slows Down Early, Uncertainty Over Budget Drags Sales

The UK housing market, which normally experiences a slowdown during the run-up to Christmas, appears to have started this trend early, according to data from property website Zoopla. Demand from home buyers and agreed sales are down compared to the same period last year, with the annual dip being amplified by a strong final quarter in 2024. This strong quarter saw many people rush to complete sales before stamp duty discounts became less generous in April 2025, likely contributing to the current market slowdown.

Key Takeaways:

• The annual dip in demand and agreed sales has been amplified by a strong final quarter in 2024, where many people rushed to complete sales before stamp duty discounts became less generous in April 2025.
• Uncertainty over the autumn Budget is acting as a drag on sales agreed, particularly for homes priced above £500,000.
• The average time to find a buyer for a home is around 37 days, rising to 45 in London.
• Despite the slowdown, Zoopla estimated there is a pipeline of nearly 350,000 homes, valued at over £100 billion, working through the sales process.
• Stability in mortgage rates has brought more sellers into the market, many of whom are also buyers, alongside strong demand from first-time buyers.
• Richard Donnell, executive director at Zoopla, stated that the slowdown is "modest and less severe than the impact of the 2022 mini-budget."

Statistics:

• Demand from home buyers and agreed sales are down compared to the same period last year.
• The average time to find a buyer for a home is around 37 days, rising to 45 in London.
• There is a pipeline of nearly 350,000 homes, valued at over £100 billion, working through the sales process.
• Sales of homes priced above £500,000 are being particularly impacted by uncertainty over the autumn Budget.
• Total value of homes in the pipeline: £100 billion

Sources:

• Zoopla: A property website that provides data and analysis on the UK housing market.
• Richard Donnell: Executive Director at Zoopla, quoted in the report.