British buyers are hitting the brakes on property searches as they wait to see what November's Budget will bring, marking the first time in two years that annual sales have dropped.
The uncertainty has people worried about potential changes to property taxes, making them think twice before taking the plunge.
Buyer demand has fallen by eight per cent compared to last year, while the number of agreed sales is down three per cent.
This signals an early start to the pre-Christmas property slowdown, arriving about six to eight weeks ahead of schedule, according to Zoopla's latest house price index.
The slowdown is particularly noticeable in higher-value areas across the country.
While some regions are still seeing growth – Scotland's up three per cent; Yorkshire and the Humber, four per cent; and the West Midlands, one per cent – it's a different story further south.
Wales has seen sales drop by nine per cent, while the South East is down eight per cent. London and the East of England aren't faring much better, with falls of five and six per cent, respectively.
Buyer demand has fallen by eight per cent compared to last year
| PAPart of this dip reflects last year's particularly busy market, when buyers were rushing to complete before stamp duty reliefs ended in April 2025.
The speculation about property tax changes appears to be putting off buyers looking at pricier homes.
Properties over £500,000 are seeing the biggest impact, which explains why southern England – where these higher-value homes are more common – is struggling most.
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Wales has seen house sales drop by nine per cent
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People are particularly worried about possible changes like higher council tax bands, replacing stamp duty with an annual property tax, or even capital gains tax on purchases above £1.5 million.
"Talk of possible property tax changes is starting to weigh on the top end of the market," the Zoopla report noted.
Many early-stage buyers are choosing to "wait and see" what the Chancellor announces before making their move.
It's taking longer to sell homes too – an average of 37 days, which is about 10 per cent slower than this time last year.
London sellers are having the toughest time, with properties taking around 45 days to find a buyer.
Despite the current slowdown, there's actually a massive pipeline of sales still working its way through the system.
Nearly 350,000 homes worth over £100 billion are progressing towards completion – the biggest pipeline in four years.
House price growth has steadied at 1.3 per cent, though it's pretty much flat across southern England, while other regions are still seeing rises above two per cent.
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