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Hypothesis round property taxes forward of the Finances contributed to a fall in dwelling purchaser demand and gross sales agreed in latest weeks, in keeping with Zoopla.
It mentioned home costs had recorded an annual fall in London and southern England for the primary time in 18 months.
Home costs have continued to extend in additional inexpensive areas, the web site mentioned.
Zoopla mentioned rumours of taxes, presumably on houses valued at greater than £500,000, within the run-up to the Finances, created uncertainty throughout the housing market. It recorded a 12% fall in purchaser demand and fewer gross sales agreed within the 4 weeks to November 23, in contrast with final 12 months.
However the web site mentioned that measures instantly impacting the housing market had proved much less vital than many householders had feared.
Within the Finances on Wednesday, the Authorities introduced a excessive worth council tax surcharge in England on houses above £2 million from April 2028.
There might be 4 value bands with the surcharge beginning at £2,500 a 12 months for properties value greater than £2 million, and rising to £7,500 for properties value greater than £5 million.
The cost will sit on prime of typical council tax and might be utilized to property house owners, quite than tenants.
The Authorities estimated that fewer than 1% of UK properties might be topic to the extra tax – however that it’s going to increase greater than £400 million in 2029-30.
Zoopla recorded annual falls in home costs in London (a 0.1% fall), the South East (a 0.1% fall) and the south west of England (the place costs fell by 0.2%) in October.
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Throughout the UK as an entire, the common UK home value elevated by 1.3% yearly in October to achieve £270,200, Zoopla mentioned.
Home costs have been rising by shut to three% yearly within the north west of England and by 2-3% throughout the remainder of northern England, Scotland and Wales, the report mentioned.
The report mentioned: “The same old Christmas slowdown has began sooner than typical with purchaser demand now 12% decrease than a 12 months in the past. Even so, gross sales agreed are solely 4% decrease, as dedicated patrons push to safe offers earlier than the tip of the 12 months.”
The web site mentioned the absence of any proposals for a brand new annual property tax on houses over £500,000 might be “welcome aid” and housing market exercise might be boosted firstly of 2026.
Sellers in southern England, the place there are greater concentrations of houses valued at half 1,000,000 pounds-plus, will see the largest increase, Zoopla predicted. However is claimed a excessive provide of houses in the marketplace will maintain costs in verify.
Richard Donnell, govt director at Zoopla, mentioned: “The Finances bark was worse than the Finances chunk for the housing market.
“Residence patrons and sellers will welcome the tip of the uncertainty that has stalled housing market exercise because the late summer time. Our knowledge exhibits the underlying demand to maneuver dwelling stays robust.
“With better certainty we anticipate a rebound in housing market exercise that builds into the brand new 12 months with households who paused dwelling transferring choices over latest months return with better confidence.”
David Powell, CEO of Andrews property agent, mentioned: “I believe home value development within the South might stay static within the short-term while the market adjusts to the brand new regular.
“I anticipate the market to bounce again from any injury brought on by leaked or shelved insurance policies main as much as the Authorities’s Finances and we’ll see exercise ranges improve throughout the South all through 2026.”
