Britain’s housing market has suffered a ‘notable’ slowdown as uncertainty over the Budget takes its toll.
Buyer demand, sales and instructions to put new properties on the market have all slowed as households await clarity over taxes, according to the Royal Institution of Chartered Surveyors (RICS).
Speculation over changes to stamp duty, capital gains tax and inheritance tax is to blame for much of the anxiety, the survey of estate agents said.
Some reported that transactions worth more than £1million had stalled.
It came after Taylor Wimpey, one of Britain’s biggest housebuilders, yesterday said market conditions have turned ‘softer’ in the run-up to the Budget on November 26.
And a separate report suggested that the Government’s ambitions to ramp up construction of new homes has run aground. It blamed taxes and red tape.
Budget fears: Demand for homes, sales and instructions to put new properties on the market have all slowed, according to the Royal Institution of Chartered Surveyors
It is the latest evidence that jitters over the prospect of a painful tax raid are forcing households and businesses to put plans on hold.
RICS said its survey ‘reveals a notable cooling across the UK’s housing market’ attributed to ‘mounting uncertainty ahead of the Budget and potential tax-raising measures’.
New buyer enquiries were at their weakest level since April while a downturn in agreed sales also worsened. New instructions by sellers slipped to the lowest level since 2021.
A reading of house prices pointed to ‘modest declines’. Tarrant Parsons, the head of market research and analysis at RICS, said activity levels were ‘drifting lower amid a lack of buyer confidence’.
He added: ‘Uncertainty surrounding potential measures in the Budget is thought to be compounding the cautious mood among buyers and sellers, while above-target inflation and rising unemployment are also a negative for the market.’
The report said the market was likely ‘to remain subdued through the remainder of 2025’.
Taylor Wimpey backed calls for the Government to bolster support for buyers. It said that ‘current uncertainty’ had led to ‘softer market conditions’ in the second half of the year.
The housebuilder said it had achieved a net private sales rate per outlet per week of 0.63 between June 30 and November 9, down from 0.71 last year after first-half momentum slowed.
Chief executive Jennie Daly signalled that the Government’s ambitions could only be unlocked if demand can be boosted among those struggling to afford a home.
It comes after rival housebuilder Barratt Redrow said last week that Labour must do more to support buyers if it wants to meet its target to build 1.5m homes over five years.
Taylor Wimpey shares fell 3.9 per cent, or 4.15p, to 101.65p yesterday, while rival Persimmon dipped 1.8 per cent, or 23p, to 1233p and Berkeley slid 2.8 per cent, or 114p, to 3994p.
Meanwhile, a report from the British Property Federation raised the alarm over ‘market headwinds’ including interest rates, higher construction costs and uncertainty caused by tax and regulation.
That has driven development of homes for rent ‘to a near standstill’, it said. Chief executive Melanie Leech added: ‘A combination of high taxes, levies and regulation is undermining the Government’s own ambitions to deliver on growth and meet housing targets.’
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