The UK housing market saw an immediate bounce-back after the Autumn Budget on 26 November, with both a major portal and estate agents reporting more enquiries, more offers and more completed deals within the first day. Months of speculation over possible tax changes had been holding the market back, but the removal of that uncertainty has prompted many home buyers to get moving again.
Tim Hyatt, head of residential at Knight Frank, said: “Our teams across London and the Country exchanged on almost £300 million of residential property this week. We saw the number of transactions more than double when compared to the same week in 2024, broadly driven by pre-Budget fears over potentially onerous tax changes, especially rumours around capital gains tax on primary residences, which would have been hugely damaging for the prime market.”
Confidence returning
Knight Frank reports that the volume of offers it received jumped markedly within just 24 hours of the Chancellor’s announcement. One of the sharpest slowdowns pre-Budget had occurred at the top of the market, but in a clear sign of returning confidence, one of the upmarket estate agent’s biggest deals of the week was a £25 million lateral apartment in a Knightsbridge garden square. It also noted renewed activity in the £750,000 to £1.5 million bracket, where many buyers had also been very cautious.
Zoopla’s latest figures paint a very similar picture. It reported that buyer demand in the four weeks to 23 November was 12% lower than a year earlier. Agreed sales, though, were only 4% lower, showing that committed movers continued to progress their purchases even during the quietest period. The portal says the market now has the largest pipeline of agreed sales in four years and estimates that two in five consumers are either watching the market or actively looking to buy. Zoopla says the South of England is likely to see the sharpest pick-up, as this is where concerns over possible new taxes on higher-value homes have caused the most hesitation.
Buyers welcoming certainty
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 returning with greater confidence.”
And the latest research from the self-employed estate agency platform eXp UK reveals that buyers are so keen to get moving again that many are prepared to push ahead during the Christmas period rather than wait for January.
Buyers plan to carry on over Christmas
The survey found that 73% of current buyers had paused their plans ahead of the Budget, but 98% now say they are ready to restart their activities. It also shows 43% would attend a viewing on Christmas Eve, and smaller numbers say they would even consider Christmas Day or Boxing Day for the right property. A further 45% plan to view between 27 December and New Year’s Day, while 71% intend to continue searching online over the break. And 86% are planning on booking in-person viewings for January to get ahead of the 2026 market.
Adam Day, head of eXp UK and Europe, said: “Now that the dust has settled and homeowners have clarity for the year ahead, many appear keen to push forward with their plans – even during the festive period. This surge in activity may not translate into headline market metrics for the final weeks of 2025, but it does suggest that we are likely to start 2026 very much on the front foot.”
So, although the housing market traditionally quiets down over the Christmas period, it looks like it could be very different this year. And after the festivities are over, it could kick on again as momentum continues to build.
