- Money
Zoopla said home buyers and sellers will ‘welcome the end of the uncertainty that has stalled housing market activity.’
Vicky ShawFriday 28 November 2025 00:01 GMT
Zoopla recorded an annual fall in average house prices across London of 0.1% (Anthony Devlin/PA Archive) (PA Archive)
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Speculation around property taxes ahead of the Budget contributed to a fall in home buyer demand and sales agreed in recent weeks, according to Zoopla.
It said house prices had recorded an annual fall in London and southern England for the first time in 18 months.
House prices have continued to increase in more affordable areas, the website said.
Zoopla said rumours of taxes, possibly on homes valued at more than £500,000, in the run-up to the Budget, created uncertainty across the housing market. It recorded a 12% fall in buyer demand and fewer sales agreed in the four weeks to November 23, compared with last year.
But the website said that measures directly impacting the housing market had proved less significant than many homeowners had feared.
In the Budget on Wednesday, the Government announced a high value council tax surcharge in England on homes above £2 million from April 2028.
There will be four price bands with the surcharge starting at £2,500 a year for properties worth more than £2 million, and rising to £7,500 for properties worth more than £5 million.
The charge will sit on top of usual council tax and will be applied to property owners, rather than tenants.
The Government estimated that fewer than 1% of UK properties will be subject to the additional tax – but that it will raise more than £400 million in 2029-30.
Zoopla recorded annual falls in house prices in London (a 0.1% fall), the South East (a 0.1% fall) and the south west of England (where prices fell by 0.2%) in October.
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Across the UK as a whole, the average UK house price increased by 1.3% annually in October to reach £270,200, Zoopla said.
House prices have been rising by close to 3% annually in the north west of England and by 2-3% across the rest of northern England, Scotland and Wales, the report said.
The report said: “The usual Christmas slowdown has started earlier than usual with buyer demand now 12% lower than a year ago. Even so, sales agreed are only 4% lower, as committed buyers push to secure deals before the end of the year.”
The website said the absence of any proposals for a new annual property tax on homes over £500,000 will be “welcome relief” and housing market activity could be boosted at the start of 2026.
Sellers in southern England, where there are higher concentrations of homes valued at half a million pounds-plus, will see the biggest boost, Zoopla predicted. But is said a high supply of homes on the market will keep prices in check.
Richard Donnell, executive director at Zoopla, said: “The Budget bark was worse than the Budget bite for the housing market.
“Home buyers and sellers will welcome the end of the uncertainty that has stalled housing market activity since the late summer. Our data shows the underlying demand to move home remains strong.
“With greater certainty we expect a rebound in housing market activity that builds into the new year with households who paused home moving decisions over recent months return with greater confidence.”
David Powell, CEO of Andrews estate agent, said: “I suspect house price growth in the South may remain static in the short-term whilst the market adjusts to the new normal.
“I expect the market to bounce back from any damage caused by leaked or shelved policies leading up to the Government’s Budget and we will see activity levels increase across the South throughout 2026.”
