The UK property market is already showing impressive stability and resilience – raising the question as to whether it needs a policy boost that many are calling for, argues Marc von Grundherr (pictured), Director of London estate agency Benham and Reeves.

The agency analysed the latest data on mortgage approvals, sales transactions, house prices and second home activity to assess the current strength of the housing market ahead of the Budget.

It found that mortgage approvals are remarkably consistent, even in the face of higher interest rates, with approvals holding steady between 61,000 and 68,000 per month for the past 18 months.

At the same time, the latest HMRC figures show activity has been steadily improving – there were 87,360 sales completed in August compared to a recent average of 86,289.

Prices at record high

It means, according to the latest UK House Price Index, the average UK property has hit a record high of £295,670.

And the data shows that even the second home market has remained robust. Despite an 18% quarterly decline, receipts from higher rates on additional dwelling transactions in Q1 2025 were the second highest since Q4 2022.

Von Grundherr says: “A further attack on second homeowners, should it materialise in the upcoming Autumn Budget, could dampen this niche segment of the market. But overall, market fundamentals remain undeniably strong, with mortgage approvals, transactions and house price growth all holding firm and then some.

So, as long as Labour doesn’t drop the ball horrifically, the reality is that the market is in a very strong position.”

“Yes, we may see a momentary dip in activity in the run-up to the Budget, as buyers wait to see what’s announced, but it’s clear that the property market simply doesn’t need a helping hand. In fact, many would argue that the more measured pace of market activity we’re currently seeing is far healthier for all involved.

He adds: “As we saw with the disastrous Kwarteng-Truss mini-Budget, a poorly executed fiscal intervention can cause serious disruption to the property market. So, as long as Labour doesn’t drop the ball horrifically, the reality is that the market is in a very strong position – and that should continue post-Budget, with or without Government help.”