Britain’s housing market has come to a standstill as buyers and sellers wait for clarity after the Autumn Budget, sparking warnings from estate agents that the sector will “limp” towards the end of the year.
New figures from Halifax show the average property price flatlining between October and November. Although annual growth continued at 0.7 percent, this marked a sharp slowdown from 1.9 percent the previous month.
Amanda Bryden, head of mortgages at Halifax, said: “This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.
“While slower growth may disappoint some existing homeowners, it’s welcome news for first time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.
“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Estate agents warn of paralysis following the Budget
Other agents have been vocal that the latest figures confirm a “pre Budget paralysis” has frozen the market.
Jonathan Hopper, chief executive of Garrington Property Finders, said Halifax’s numbers reveal “just how nervy” the market was. He said: “In November, large swathes of the market were suspended between confidence and caution.
“Every deal was hard fought and sentiment was fragile, especially in areas with higher average prices, where Budget jitters had a sharp chilling effect.”
The Chancellor’s introduction of a mansion tax, placing a surcharge on council tax bills for homes worth more than two million pounds, also intensified anxiety at the top end of the market.
An estate agent in the Midlands, who did not wish to be named, said the top end of the market has recently “fallen off a cliff”.
The agent said: “No one is even booking viewings on the higher value properties at the moment. Rachel Reeves has a lot to answer for. What she does not seem to grasp is that this all trickles down. When the top of the market freezes, the whole economy takes the hit. People stop putting in new kitchens, they delay extensions, builders lose work, suppliers lose orders. It spreads fast and it hurts everyone.”
Hope on the Horizon?
However, Britain’s property sector has weathered the turbulence surrounding the Budget far better than expected, according to the president of OnTheMarket, who said the series of interest rate cuts since last summer has helped steady nerves across the country.
Jason Tebb said: “The housing market showed considerable resilience this year, shaking off external economic concerns and holding up remarkably well even when the stamp duty concession ended and when speculation was rife as to what property taxes the Budget might contain.
“However, national average figures conceal significant regional differences with the market performing stronger in the north than the more expensive south, where affordability is more of an issue.
“Confidence among buyers and sellers has been boosted by five base rate cuts over the past 16 months.”
London prices fall fastest as the north surges ahead
House prices fell in London by 1 percent in November, the steepest drop across the UK. The South East saw a fall of 0.3 percent and Eastern England dipped by 0.1 percent. London remains the most expensive region with an average home costing 539,766.
Northern Ireland was the strongest performing nation, with values rising 8.9 percent year on year to reach 220,716. Scotland recorded annual growth of 3.7 percent with an average price of 216,781. Wales saw prices climb 1.9 percent to 229,430.
In England, the North West led with growth of 3.2 percent to 245,070, followed by the North East with a rise of 2.9 percent to 180,939.
As the year draws to a close, analysts say the sector may remain subdued until confidence returns, though a series of expected interest rate cuts could provide relief for households and support gradual price growth into 2026.
