05Speculation about the contents of the upcoming autumn budget is fueling uncertainty across the housing market, with property tax rumours triggering a drop in sales, Rightmove says.
Average new seller asking prices fell by 1.8% in October, a larger than usual November drop Rightmove attributes to the budget hiatus and a decade-high number of homes for sale.
Properties at the higher end of the market have experienced the largest drop in sales, with sales agreed for homes priced at £2 million or more (and subject to the rumoured mansion tax) down 13% year-on-year, and sales of homes in the £500,000 to £2 million price bracket down by 8%.
Overall, though, the number of sales agreed is 4% up on October 2024. ‘It’s also important to note that this data for the full month of October is comparing with a strong month last year where sales activity was ramping up, particularly in the south of England, in anticipation of the stamp duty increases in England from April 2025’, Rightmove pointed out.
“Falling interest rates and rising wages have boosted affordability. But the market still needs further Bank Rate cuts and less uncertainty about taxes.”
‘Rumours of the contents of the forthcoming budget are affecting the market, as we’re seeing a greater hesitation in sales activity, especially at the upper end, which has been the focus of most of the discussion’, Rightmove’s property expert Colleen Babcock said.
“While there is also a general unease at how the budget may impact personal finances, the majority of home moves would be unaffected by the rumoured changes to property taxes. Falling mortgage rates and rising wages have boosted buyer affordability, but the market also needs further Bank Rate cut and less uncertainty about taxes.
“If we can see some mortgage rate reductions over the next few weeks, supported by a December Bank Rate cut, we could start 2026 on a positive note with the end of the prolonged Budget hiatus lifting the gloomy atmosphere of recent weeks.”
Mary-Lou Press, president of NAEA Propertymark (National Association of Estate Agents), agreed the market remains cautious ahead of the budget.
‘When buyers and sellers face mixed signals about potential tax changes, it’s natural to see hesitation and a sharper seasonal slowdown than usual’, she explained.
“While efforts are supported to ensure stability and fairness within the housing market, continued rumours of major reforms, from stamp duty and capital gains adjustments, to a potential mansion tax, risk undermining confidence and discouraging transactions.
“Despite softer sentiment in the higher-value sectors, the broader picture remains more resilient, helped by gradually improving mortgage rates and better affordability. Our member agents continue to report steady interest from committed movers, especially in the mainstream market, typically below £500,000.
“Providing clarity and stability will be key to maintaining momentum as we move into 2026.”
