UK house prices reached a new record high of $pounds$299,862 in October, but industry experts suggest the market is holding its breath for the budget on November 26. The 0.6% monthly price rise, while strong, masks a “calmer” market where many buyers have hit pause.
According to Matthew Thompson of estate agent Chestertons, the looming budget—and widespread reports of potential stamp duty reform—has caused many to delay their purchasing decisions. “October’s property market was noticeably calmer as many buyers have paused to see what the budget might bring,” he said.
This makes the 0.6% price rise, which reversed a September dip, even more significant. It suggests that while many are waiting, the buyers who are active, combined with a high number of mortgage approvals, were enough to push the average price to a new peak.
The clear expectation from experts is a rebound in activity once the Chancellor’s plans are public. Thompson predicts that “once there is more clarity… we expect buyer activity to pick up as those waiting on the sidelines re-enter the market,” likely from December.
This sets the stage for a potentially busy end to the year. While affordability remains a chronic issue, with buyers stretching their finances, the biggest immediate hurdle to transaction volume appears to be this short-term political uncertainty.