Executive Summary
- New data from RICS shows a significant drop in UK buyer demand and agreed sales, with both metrics reaching their lowest levels since April.
- Major housebuilders, including Taylor Wimpey, have reported a decline in sales rates, citing budget uncertainty and persistent affordability issues.
- The market is expected to remain in a “holding pattern” through the end of 2025, with a potential recovery contingent on policy clarity in the upcoming budget.
The United Kingdom housing market is experiencing a notable slowdown, with buyer demand, sales, and new listings all declining due to widespread uncertainty ahead of the government’s Autumn Budget. Recent industry data indicates that both buyers and sellers are adopting a “wait-and-see” approach, postponing major decisions until the government clarifies its fiscal and taxation policies.
Key Market Indicators Weaken
According to the October 2025 UK Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS), new buyer enquiries fell to a net balance of -24%, the lowest reading since April. This nationwide hesitancy was mirrored in sales activity, with agreed sales registering a net balance of -24%. At the same time, new properties coming to market continued to decrease, with new vendor instructions reaching their weakest point since 2021.
The national price balance held at -19%, with the most significant price drops reported in London, the South East, and East Anglia. While surveyors expect prices to soften further in the next quarter, the 12-month outlook has turned positive, with a net balance of +16% anticipating a recovery.
Impact on Rental and Construction Sectors
The rental market has also been affected. While tenant demand is stabilizing, landlord instructions have fallen sharply to their lowest level since April 2020. Surveyors noted concerns among landlords regarding the Renters’ Rights Act and potential tax increases. “The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence,” said Tarrant Parsons, head of market research and analysis at RICS. “Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood.”
Housebuilders are also feeling the pressure. Taylor Wimpey, a major residential developer, reported its net private sales rate fell to 0.63 homes per week between late June and early November, down from 0.71 in the same period last year. The company’s forward order book also decreased. “Market conditions remain challenging, impacted by uncertainty ahead of the upcoming UK budget and continued affordability pressures,” stated Jennie Daly, chief executive of Taylor Wimpey.
A Market in a Holding Pattern
Many market participants describe the current environment as a “holding pattern,” with activity likely to remain subdued through the end of 2025. A significant recovery is not anticipated until early 2026, after the contents of the Budget are revealed and its effects on stamp duty, capital gains, and inheritance tax are fully understood.
