Story perspectives

UK Housing Market Cools Amid Tax Hike Uncertainty

10/20/2025

Summary

Story summary

The UK housing market slowed amid uncertainty over potential tax increases in the upcoming budget by Chancellor Rachel Reeves.
In October, average asking prices rose 0.3% to £371,422, well below the typical 1.1% increase for this time of year.
New buyer inquiries and seller listings fell 5% in September versus 2024.
Experts link high property choice and affordability issues to weaker buyer confidence, leaving the market cautious, especially in the South.

History

Historical Context

The UK housing market crisis began in 2008, following a global downturn triggered by the U.S. subprime mortgage crisis. House prices fell by 20% on average, and mortgage approvals dropped from 100,000 in early 2007 to just 30,000 by January 2009. Today, the market remains cautious, with lingering affordability issues and uncertainty over tax increases affecting buyer confidence, particularly in the South.

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Story summary

The UK housing market slowed amid uncertainty over potential tax increases in the upcoming budget by Chancellor Rachel Reeves.
In October, average asking prices rose 0.3% to £371,422, well below the typical 1.1% increase for this time of year.
New buyer inquiries and seller listings fell 5% in September versus 2024.
Experts link high property choice and affordability issues to weaker buyer confidence, leaving the market cautious, especially in the South.

1 / 2