Budget Speculation Rattles Southern House Prices
- Sarah Ruivivar
- Dec 1, 2025
- 2 min read
Budget speculation has sent ripples through the southern England property market, leading to a rare dip in house prices, according to Zoopla’s latest House Price Index.
As whispers of potential property taxes swirled, home buyer demand and sales agreements took a hit, with prices in London and southern regions falling for the first time in 18 months. Meanwhile, more affordable areas continued to see prices climb.
The drama unfolded as rumours of taxes on homes over £500,000 cast a shadow, causing a 12% drop in buyer demand and fewer sales in the weeks leading up to the Budget. However, with the Budget now revealed and no new annual property tax in sight, relief is palpable among the 210,000 homeowners with properties above this price point.
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Despite the turmoil in the south, the broader UK market showed resilience, with average prices rising by 1.3% to £270,200. Regions like the North West saw even greater gains, with prices up by 2.9%.
Yet, Stamp Duty remains a thorny issue, particularly in the south. Set in 2014, the thresholds haven’t kept pace with a 47% rise in house prices, leading to increased costs for buyers. Calls for reform grow louder, with many advocating for the abolition of Stamp Duty to ease the fiscal burden.
Richard Donnell from Zoopla notes that the Budget’s bark was worse than its bite, and with uncertainty lifted, a rebound in market activity is expected. Meanwhile, James Nightingall of HomeFinder AI highlights that while many paused their search, first-time buyers remain keen to seal the deal before year-end.
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