UK house sales drop 2% annually in October – but it’s not all bad news | Personal Finance | Finance
House sales in October were 2% down compared with the same month a year earlier, HM Revenue and Customs (HMRC) figures show.
Across the UK, approximately 98,450 home sales took place in October 2025, representing a 2% decline from October 2024 but a 2% rise from September 2025. Industry experts are optimistic about the housing market moving forward, as Chancellor Rachel Reeves’s Autumn Budget “didn’t deliver the major blow” for homeowners that most were expecting. Unveiling the Budget on Wednesday, Ms Reeves announced a new high-value council tax surcharge in England on properties exceeding £2 million from April 2028.
The Government estimated that under 1% of UK properties will face the additional tax – but that it will generate over £400million in 2029-30.
Nick Leeming, chairman of Jackson-Stops, said: “Today’s transaction results show a mixed-bag; whilst there were reports of transactions pressing ahead to beat the Budget deadline, in the main we saw a market on pause.”
He added: “It is likely we will see more stock come to the market in the short-term, with minor price adjustments for properties just over the £2 million cliff edge.
“We might also see an increase in demand for homes under the tax limit, where buyers adjust budgets with household cashflow in mind. For the South East, this could create upward pressure on prices in the mid-tier or even lower-end property markets, leading to spillover effects for demand in new areas.
“Jackson-Stops’ national figures show a more selective market overall, but it’s far from a one-size-fits-all story. Outside the South East, the £500,000 to £800,000 bracket is bucking the trend, with momentum gathering pace – proof that some regions are very much putting their foot back on the gas. We have heard from agents across the country following the Budget that prime buyers are moving at pace with clarity now in mind.”
North London estate agent Jeremy Leaf said: “As affordability gradually improves, especially with another base rate cut looking likely, we expect transaction numbers to pick up.
“With the Budget out of the way, and mansion tax likely to raise relatively little additional revenue, especially given the deferred payment date, the impact on housing market activity should be minimal at worst.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The data reflects sales agreed months earlier, before the Budget rumour mill had fully cranked into action.”
She added: “The fact that the Budget didn’t deliver a major blow for buyers should help support sales in the coming months. News of the so-called mansion tax, with an annual charge on properties worth more than £2 million, may well make a difference at the top end of the market, and some of that will trickle down.
“However, it’s nowhere near the kind of impact that a wide-ranging and expensive tax could have had.”
Iain McKenzie, chief executive of the Guild of Property Professionals, said: “Now that the Budget has been confirmed, thousands of movers finally have the clarity they need to progress.
“What we’re seeing beneath the headlines is a market underpinned by needs-based buyers and sellers, those upsizing, downsizing, or moving for lifestyle reasons, who have continued to transact.”
Jason Tebb, president of OnTheMarket, added: “With the Budget out of the way, uncertainty has been removed. Buyers and sellers can make decisions with confidence and proceed with transactions without worrying as to what may be around the corner.”
