UK property market cools amid autumn budget fears

The UK housing market cooled further in October as uncertainty ahead of the autumn budget dampened buyer sentiment and slowed sales activity, according to a survey of surveyors.

Buyer demand, agreed sales and new instructions all slipped deeper into negative territory, the Royal Institution of Chartered Surveyors (RICS) said in its latest UK Residential Market Survey.

Property professionals attributed the slowdown to mounting concern over potential tax-raising measures expected to feature in the autumn budget.

A net balance of 24% of respondents reported a fall in new buyer enquiries, the weakest reading since April. An identical 24% recorded a decline in agreed sales, while a net balance of 20% said new instructions to sell had fallen rather than risen, marking the lowest level since 2021.

House price pressures also continued to ease, with a net balance of 19% of surveyors reporting declines. RICS said downward pressure was particularly pronounced in London, the South East and East Anglia.

Read more: Lenders slash mortgage prices as Bank of England holds interest rates

Prices are expected to soften slightly over the next three months, although respondents anticipate a modest recovery over the coming year once fiscal policy becomes clearer.

In the lettings market, landlord instructions fell sharply, with a balance of 33% of professionals reporting declines, the weakest reading since 2020. Tenant demand flattened, with a balance of 4% recording a fall.

Expectations for rent increases have cooled compared to the strong growth of recent years, as surveyors highlight concerns over potential tax rises that are undermining landlord confidence.

Tarrant Parsons, RICS head of market research and analysis, said: “The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence.

Read more: Rachel Reeves lays the ground for raising taxes in autumn budget

“Ongoing uncertainty surrounding potential measures in the upcoming budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.

“The coming months will be crucial in assessing how the market responds to the budget, which could prove a turning point in either direction. Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.”

Housebuilder Taylor Wimpey (TW.L) on Wednesday revealed weaker sales in the second half of 2025, blaming uncertainty ahead of the autumn budget.

Story Continues

Boss Jennie Daly said the housing market is currently “challenging”, highlighting “uncertainty ahead of the upcoming UK budget and continued affordability pressures”.

Daly said: “We have delivered a resilient performance thanks to the hard work of our teams on the ground. Market conditions remain challenging, impacted by uncertainty ahead of the upcoming UK Budget and continued affordability pressures.

"We welcome the government’s planning reforms, and we hope to see continued momentum to enable the supply of much needed new homes across the UK as focus moves to the implementation phase. However, the government’s housing ambitions, and the significant economic and social benefits of increased housing supply can only be unlocked by effective demand, particularly for affordability constrained first time buyers."

Chancellor Rachel Reeves is due to deliver her autumn budget on 26 November.

Download the Yahoo Finance app, available for Apple and Android.

View Comments