Property ‘sales agreed’ slump as buyers ‘wait and see’ until Budget
Zoopla says the annual sales agreed total has dropped for the first time in two years ahead of next month's Budget.
The number of agreed property sales has fallen for the first time in two years, according to the latest Zoopla HPI.
The portal blames next month’s Budget, saying there is “a growing ‘wait and see’ attitude amongst home buyers”.
So, the usual pre-Christmas slowdown has started early, with sales agreed down 3% year-on-year and buyer demand down 8%.
Pipeline boost
However, two years of increased sales activity have created a sales pipeline of almost 350,000 homes, which is the largest in over four years.
Zoopla says more homes for sale and weaker demand have stalled house price growth in Southern England, while it remains over 2% across Scotland, Wales and northern England
Less severe
Richard Donnell, Executive Director at Zoopla, says: “The slowdown is modest and less severe than the impact of the 2022 mini budget.
“It’s early stage buyers adopting a cautious approach to new purchases ahead of the Budget with greater caution for those buying higher value homes.”
The current slowdown should therefore be viewed as a temporary pause.”
Guy Gittins, CEO at Foxtons, says: “While the market has clearly slowed in recent weeks, much of this reflects a natural pause as buyers and sellers understandably take stock ahead of the November Budget.
“Once there is greater clarity around taxation and economic policy, we expect confidence to return quickly – particularly in London, where underlying demand remains strong and well-funded buyers are still active,” he says.
“The current slowdown should therefore be viewed as a temporary pause rather than a fundamental shift in market dynamics.”
