Economic uncertainty pushes potential house buyers to hold off
An unpredictable economic and policy landscape has caused a slowdown in housebuying activity in the UK, according to new data.
There were 93,630 UK residential transactions in August, two per cent higher than August 2024 but two per cent lower than July 2025, according to HMRC.
There’s been a “noticeable shift” in sentiment amongst Brits recently, Ryan McGrath, director of Second Charge Mortgages at Pepper Money, said.
“In more predictable market conditions, [many] might have already made decisions to move [but] economic uncertainty and the financial impact of expiring fixed-rate deals, particularly those secured before 2022, are prompting a reassessment of priorities,” McGrath added.
Nick Leeming, chair of Jackson-Stops, added that speculation around housing policy reform in the Autumn budget is “already weighing on the market”.
Stamp duty changes in the Budget?
Proposals under consideration include replacing Stamp Duty with a national property tax on homes, staggering stamp duty payments, creating a ‘mansion tax’ for large houses and introducing a selling tax.
Leeming warned that downsizing would be especially affected by the proposed reforms, with older homeowners “highly sensitive” to stamp duty changes.
Tomer Aboody, director of specialist lender MT Finance, added: “With the Budget coming up and more taxes on the horizon, buyers are waiting before they make their move. Fearing wealth tax and an annual property tax, many will wait to see if these come about and whether it’s financially viable to move.”
Housing market ‘moving in the right direction’
Other housing experts, however, were more optimistic about the state of the market.
“A slight dip in seasonally-adjusted transaction numbers should be considered in context, with three previous months of consecutive increases suggesting the market is moving in the right direction overall,” Jason Tebb, President of OnTheMarket, said.
“The housing market remains remarkably resilient despite wider economic and political concerns… Five interest rate reductions in the past year have provided confidence and reassurance for buyers and sellers alike,” Tebb said,
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, added that the summer market has been “surprisingly resilient”.
“In our offices, well-priced property continued to sell and the gap between serious buyers and committed sellers has narrowed,” she said.
“Much depends on where you are in the country in terms of how much your local market is affected. In our part of the country, transaction levels do not seem significantly suppressed but from speaking to agents in other parts of London they are seeing a noticeable slowdown as people wait.”