Property Sales Pipeline Slows Ahead

The property sales pipeline reflects growing caution as Budget uncertainty slows buyer confidence and housing market momentum across Britain. According to Zoopla’s latest House Price Index, this cautious sentiment has resulted in the first annual fall in new sales agreed in two years, compared with October 2023.

Traditionally, the housing market experiences a pre-Christmas lull; however, this year, the slowdown has arrived up to two months earlier. Buyer demand has dropped by 8%, while the number of agreed sales is down 3% year-on-year. The shift follows a particularly active end to 2024, when many buyers rushed to complete purchases before the scheduled end of stamp duty relief in April 2025.

Budget Speculation Fuels Property Sales Pipeline Caution

Although there are 7% more homes available than a year ago, regional variations reveal a split market. Sales continue to rise modestly in Scotland (3%), Yorkshire & the Humber (4%), the South West (1%) and the West Midlands (1%). Yet southern England and Wales are facing sharper declines, with agreed sales down in Wales (9%), the South East (8%), the East of England (6%) and London (5%).

Much of this hesitancy is linked to speculation about possible tax reforms expected to be discussed in the upcoming Budget. Proposals reportedly under consideration include replacing stamp duty with an annual property levy. Additionally, the government may introduce capital gains tax on high-value homes and reform existing council tax bands. As a result, many potential buyers – particularly those in higher price brackets – have opted to delay decisions until after policy details are confirmed.

Price Growth Cools but Market Remains Stable

Overall, UK house price growth has slowed to 1.3% year-on-year, roughly matching the rate recorded in 2024. The average property is now valued at £270,000 – around £3,600 higher than a year ago.

However, the pace of growth is uneven. In southern England, where affordability pressures remain acute, prices have virtually stagnated. Meanwhile, Scotland, Wales, and the North of England continue to post more resilient gains of over 2% annually. This north-south divide highlights how local economies and price points are shaping regional market performance.

High-value homes, particularly those above £500,000, are seeing the sharpest drop in buyer demand and listings. Affordability constraints and rising living costs have intensified challenges in this segment. Moreover, Budget uncertainty adds pressure in London and the South East, where high-value properties dominate the market.

Property Sales Pipeline Remains Strong Despite Slowdown

While new activity has softened, the market continues to process a significant backlog of transactions. Nearly 350,000 homes – collectively worth more than £100 billion – are currently progressing through the completion process. This represents the largest sales pipeline in over four years, dating back to May 2021.Property Sales Pipeline 1

This high volume reflects the extended timeframes involved in property transactions, with the average completion now taking between five and six months. Many sellers remain active participants in the market as they are also prospective buyers, keeping the chain moving. Additionally, first-time buyers – supported by relatively stable mortgage rates – continue to play a key role in sustaining demand.

Longer Selling Times Affect Property Sales Pipeline

Despite the underlying stability, the time it takes to sell a home has increased. On average, properties are now on the market for 37 days before being sold – about 10% longer than in 2024.

Southern regions are experiencing the slowest turnaround, with London properties taking an average of 45 days to sell, marking a 20% increase year-on-year. Conversely, the North of England and Scotland remain the most active markets, with quicker sales and consistent demand.

This regional disparity underscores the importance of realistic pricing strategies for sellers. Homes that are initially overpriced tend to linger on the market significantly longer, often requiring multiple reductions before securing a buyer.

Expert Outlook: Market Still on Solid Ground

Richard Donnell, Executive Director at Zoopla, commented:

“The housing market is seeing a modest slowdown, but serious sellers and motivated buyers remain. With a record number of homes available, there’s still plenty of movement as people look to progress their next purchase.”

He noted that early-stage buyers are the most cautious ahead of the Budget, particularly those purchasing higher-value homes. However, experts expect the market to record the highest number of sales since 2022, and house prices to finish the year 1-1.5% higher than they began.

What to Expect in the Coming Months

As the Budget approaches, all eyes are on potential tax and policy changes that could reshape buying behaviour. If the Chancellor delivers measures to improve affordability or incentivise first-time buyers, market activity may rebound early in 2026. Conversely, any new taxes on property ownership could reinforce the current conservative sentiment among buyers and investors alike.

For now, the market appears steady but subdued – defined by higher supply, slower sales, and a cautious optimism that hinges on fiscal clarity. Whether this translates into renewed growth or a longer period of stagnation will depend largely on what the November Budget brings.