Asking prices for homes in the UK saw only a slight increase in October as more properties became available, according to a survey released on Monday. The report also indicated that some
buyers are holding off on making decisions until there is more clarity on potential tax changes in the government’s upcoming budget.
Rightmove, a leading property website, revealed that asking prices increased by just 0.3% in October—well below the typical 1.3% monthly rise for this time of year. The number of homes available for sale was 12% higher than the same period last year, marking the highest level per estate agent since 2014.
Despite the modest price growth, overall activity in the housing market remained robust, with buyer demand continuing to rise. On a yearly basis, house prices were up by 1.0%.
Tim Bannister, Rightmove’s director of property science, noted that some potential buyers are waiting for clearer signals on borrowing costs from the Bank of England and details from the government’s upcoming budget, set to be announced on October 30.
"While there’s uncertainty around the budget, the broader outlook for the market heading into 2025 remains positive. Market activity remains strong despite affordability challenges faced by movers," Bannister said. "If we see clarity from the budget, followed by further Bank Rate cuts, we could witness another wave of market optimism, similar to what we experienced over the summer."
The report aligns with other indicators of renewed momentum in Britain’s housing market. Mortgage lenders Halifax and Nationwide both reported increases in house prices in September.
Chancellor Rachel Reeves is scheduled to deliver her first budget on October 30. Reeves has hinted at the possibility of tax increases, though she emphasized that Prime Minister Keir Starmer's government would avoid raising taxes on "working people." Reports suggest that the government will not extend the current elevated stamp duty thresholds beyond their scheduled expiration in March.
The Bank of England is expected to reduce its benchmark interest rate at its upcoming meetings in November and December, following its first rate cut in over four years this past August. Rightmove noted that mortgage rates had been falling but recently saw a slight uptick, with average five-year fixed rates rising to 4.61% from 4.55% last week—marking the first weekly increase since May.