The UK property market experienced a noticeable slowdown during October, with official figures revealing a dip in completed sales as political uncertainty and substantial moving expenses discouraged potential buyers.
Market Pause Ahead of Budget Announcement
According to data released by HMRC, residential property transactions for October 2025 reached 98,450. This figure marks a 2 per cent decrease compared to the same month in 2024, highlighting a clear cooling in market activity.
Nick Leeming, Chairman of Jackson-Stops, characterised the situation as a "market on pause," pointing to a climate of hesitation among purchasers. This nervousness was largely driven by speculation surrounding the autumn Budget, with rumours of new property taxes circulating widely.
Chancellor's Tax Decision: Relief and Concern
In her budget, Chancellor Rachel Reeves introduced a council tax surcharge on homes valued over £2 million. While this was seen as a relief to some who had feared a more extensive levy, the move has created a mixed response.
"The Chancellor’s decision to avoid a wider property tax and keep Stamp Duty unchanged should help lift market confidence," noted Hamza Behzad, Business Development Director at Finova. However, he also cautioned that potential taxes on high-value properties and landlords could exacerbate pressures in the rental sector, making lender support more critical than ever.
Affordability Crisis and a Glimmer of Hope
The core issues of affordability have seen little improvement throughout 2025. Stamp duty remains a significant financial barrier for many, while high deposit requirements force a growing number of buyers to seek financial help from their families.
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, confirmed that "nothing has got cheaper when it comes to moving, particularly stamp duty." She emphasised that market pressure will persist without direct government intervention to stimulate activity.
One potential bright spot identified by experts is the prospect of lower interest rates. Tomer Aboody, director of MT Finance, suggested that "an interest rate reduction early in 2026... would go some way to encouraging more activity." He stressed that assistance is ultimately required to get the market functioning properly again and encourage both buyers and sellers to make their move.
