Zoopla is predicting the property market will rebound now the hiatus caused by home movers adopting a ‘wait and see’ approach before the Budget is over.
In the end, the speculation about a Mansion Tax proved to be spot on, with a new ‘super council tax’ being introduced by Chancellor Rachel Reeves.
From April 2028, owners of properties valued at over £2 million will be liable for a recurring annual charge on top of their existing Council Tax liability.
But there were no changes to Stamp Duty, which would have had a big impact on the market.
The Budget bark was worse than the Budget bite for the housing market”
Now, Richard Donnell, Executive Director at Zoopla (main picture), says: “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,” he says.
We expect a rebound in housing market activity that builds into the new year.”
“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 return with greater confidence.”
The latest Zoopla House Price Index reflects the slowdown over the last few months.
House prices in London and the South recorded their first fall in 18 months, driven by budget uncertainty and more homes for sale, the portal says.
And UK-wide buyer demand dropped 12% year on year, whilst sales agreed fell 4%.
Industry reaction
Tom Bill, Head of UK Residential Research at Knight Frank, says: “There is more certainty after the Budget, which should allow demand to bounce back following months of speculation.
“However, there are still questions around the Mansion Tax. Until it is introduced in 2028, buyers and sellers face uncertainty around price thresholds and even once valuations are completed, they could be challenged, which would prolong the limbo.”
And Simon Gammon, Managing Partner at Knight Frank Finance, says: “The speech paves the way for another rate cut from the Bank of England in December, and perhaps another early next year.
“It’s likely to be a solid if unspectacular 2026 in the property market, and high-value markets in particular will be subdued until homeowners get to grips with the new ‘mansion tax’.”
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “Many property agents and consumers will be left scratching their heads that, after months of speculation and the expectation of large-scale changes to Stamp Duty, nothing has materialised.
“All this speculation and uncertainty caused people to wait and see, which is not helpful for market activity and economic growth,” he says.
“It is surprising that the UK Government’s Budget does not include a wide-ranging package of support for people to get onto or move up and down the property ladder.”