November 21, 2025
With the Autumn Budget approaching on 26 November, the UK housing market has shifted into a noticeable slowdown. Rightmove’s latest data suggests this is more than the typical pre-Christmas quiet period. The market is clearly reacting to growing uncertainty around potential tax changes and future policy decisions.
This is not a collapse in demand. It is a pause while buyers and sellers wait for clarity.
A Market Waiting for Direction
In November, the average asking price for new listings fell by 1.8%. That brings the national average to £364,833 and marks the sharpest November drop since 2012. Roughly one in three homes currently for sale has already had a price reduction. The typical reduction is around 7%.
The number of properties on the market has also reached its highest level in ten years. More choice means buyers can take their time to make informed decisions. Sellers who price too optimistically are quickly discovering that overvalued listings are being ignored.
Interestingly, the overall level of activity has not vanished. The volume of sales agreed so far this year is slightly higher than in 2024. Buyers are still engaging with the market, but they are becoming more selective and more prepared to negotiate.
London Shows a Deeper Slowdown
London is feeling the shift more acutely. Asking prices in the capital fell by 2.4% in November and are down 2.1% compared with last year. This suggests genuine caution across higher-priced areas where affordability and tax exposure are already stretched.
The upper tiers of the market are seeing the most pressure. Sales agreed for homes priced above £2 million are down by approximately 13% year on year. Homes priced between £500,000 and £2 million have seen an 8% fall in sales.
In contrast, the lower and mid-market remain more resilient. Homes priced under £500,000 account for most transactions across the UK and have experienced only modest annual declines.
Why This Is Happening
Budget speculation is the central driver. There is no confirmed policy yet, but discussions around stamp duty, capital gains tax and potential levies on high-value homes are influencing behaviour. Buyers are reluctant to commit without knowing what the next few weeks will bring. Sellers are concerned that tax changes could reduce demand or increase holding costs.
Mortgage rates are falling, which would normally strengthen buyer confidence. The average two-year fixed rate is now around 4.41% compared with more than 5% a year ago. However, the improvement has not been strong enough to outweigh the uncertainty created by tax speculation.
The result is a market that is not distressed but is deliberately waiting for information.
LPB’s Take
For buyers in the sub £500,000 range, this moment could be an opportunity. Asking prices are softer, sellers are more flexible and borrowing conditions are improving. Buyers who are prepared and well-financed may be able to secure better value than they would have earlier in the year.
For those in the £500,000 to £2 million bracket, the best strategy is to remain informed and patient. Prices are already under pressure, and the Budget may push the market in either direction.
At the top of the market, uncertainty is highest. Anyone considering buying or selling above £2 million will need to pay close attention to potential tax measures. Well-priced properties in this segment can still attract interest, but sentiment is cautious.
What Happens After the Budget
The Budget will set the tone for early 2026. If tax changes are limited and mortgage rates continue to ease, confidence could improve quickly. If measures are more aggressive, particularly in higher value brackets, the current slowdown could extend into the new year.
The one constant is that markets rarely stay in limbo for long once policy decisions are announced. Activity is likely to pick up again once buyers understand the financial landscape.
Thinking of Making a Move?
If you plan to buy or sell in the next six to twelve months, this is the time to prepare. Review your borrowing capacity, understand how potential tax changes could affect you and make sure your property is priced for the reality of today’s market rather than last year’s sentiment.
If you would like tailored guidance, valuations or support navigating the next steps, the LPB team is ready to help.