Property market sees first annual fall in new sales in two years: Zoopla – Mortgage Strategy
Zoopla’s latest house price index showed budget uncertainty led to an increasingly “wait and see” attitude among homebuyers in November, leading to the first annual fall in new sales in two years.
The latest data shows that the usual pre-Christmas slowdown has begun six to eight weeks earlier, with buyer demand down 8% and agreed sales down 3% year-on-year.
Budget uncertainty and speculation about property tax reform, including changes to stamp duty and capital gains tax, are dragging down completed sales, particularly for homes priced over £500,000.
Meanwhile, the latest Rightmove house price index shows house price growth has slowed this year and is now at 1.3%, broadly in line with levels a year ago.
The average UK house is now worth £270,000, an increase of £3,600 on last year.
More homes for sale and weak demand have caused house price growth to stall in southern England, while growth in Scotland, Wales and the north of England remained above 2%.
Despite the current economic slowdown, two years of increased sales activity have created a sales pipeline of nearly 350,000 homes, which are being completed. These products are worth more than £100 billion and have been the largest sales channel for more than four years.
Richard Donnell, executive director of Zoopla, said: “Property market activity is slowing, but there are still a lot of sellers looking to buy and secure their next home. Buying a house is a long process and record numbers of homes for sale mean many buyers are looking for their next home.”
“The slowdown is modest and will not be as severe as the impact of the 2022 mini-budget. Early buyers are taking a cautious approach to new purchases in the run-up to the Budget, and are even more cautious about those buying high-value homes. The property market is still on track to deliver the majority of home sales from 2022, with house prices ending the year 1-1.5% higher than at the start of 2025.”
Meanwhile, Propertymark chief executive Nathan Emerson said: “While new sales were expected to slow ahead of the Budget, many of our member agents continue to report high levels of motivation from buyers and sellers who are simply pausing for clarity rather than exiting the market entirely.”
“Speculation around potential changes to stamp duty and capital gains tax will inevitably create uncertainty, particularly at the top end of the market, but fundamentals remain stable. Employment levels are strong, mortgage rates have fallen slightly and the overall sales pipeline remains strong.”
“Hopefully the Chancellor recognizes the importance of confidence and stability in the property sector. Any reforms must provide long-term certainty and support for buyers and sellers, rather than short-term measures that could lead to further hesitancy. The UK Government has an opportunity next month to build trust and momentum in the market as we move into 2026.”
