Buyer interest in properties worth more than half a million fell by 4% in the five weeks to 21 September compared with the same period last year. New listings for homes in this price bracket were also down 7%.
At the top end of the market, demand for homes priced over £1 million dropped by 11%, with listings falling by 9% year-on-year.
Zoopla said the slowdown in the higher end of the market contrasts sharply with the rest of the housing sector, where demand and supply remain stable.
Regional Pressures and Stamp Duty Impact
The report highlighted that buyers in London, the South East, South West and eastern England face higher stamp duty costs and affordability constraints, dampening house price growth. Prices for properties above £500,000 have been largely static, while house prices in more affordable areas continue to rise faster.
Annual house price inflation was running at 1.4% in August, but in markets with average house prices below £200,000, inflation was twice as high at 2.8%.
Across southern England, house price growth remains weak, with rises of less than 0.5% in London, the South East, the South West and the East of England. By contrast, Northern Ireland registered the strongest growth at 7.9%, while the North West recorded a 3.1% rise.
Zoopla identified five areas with the fastest-rising prices, including Kirkcaldy (KY), Oldham (OL), Tweeddale (TD), Motherwell (ML), and Llandrindod Wells (LD). In contrast, prices continued to fall in parts of southern England and central London, with annual declines of more than 1% in areas such as Bournemouth, Exeter, Torquay and Truro.
Market Outlook Ahead of the Budget
Speculation over possible tax changes in the upcoming November Budget has prompted some wealthier buyers and sellers to delay transactions.
Richard Donnell, Zoopla’s executive director, said:
“The market is on track for the most sales since 2022, but without rapid house price inflation. Pre-Budget speculation has been bigger than usual this summer, leading some buyers and sellers to delay decisions for homes priced over £500,000. The wider market remains largely unaffected.”
Kevin Shaw, national sales managing director at Leaders Romans Group, added:
“The housing market has shifted in favour of buyers, with sellers increasingly willing to negotiate on price. First-time buyers remain active, benefiting from lower interest rates. At the upper end, however, tax speculation has created hesitation.”
Shaw suggested that while 2025 may remain relatively flat, confidence should return once fiscal policy is clarified, paving the way for a stronger spring market.
