Zoopla says Christmas housing market downturn has started early

According to a property website, the general slowdown in the housing market seen before Christmas has started early.

Demand from home buyers and agreed sales are lower than a year ago, Zoopla Said.

It said the annual decline was exacerbated by a strong final quarter in 2024, when many rushed to complete sales before the stamp duty rebate became less generous in April 2025.

Report says there is uncertainty about autumn Budget This is particularly acting as a drag on agreed sales for homes priced over £500,000.

some parts of Britain Strong sales are being seen compared to a year ago, e.g. scotlandYorkshire and the Humber, the South West and the West Midlands, Zoopla said.

But Wales, the South East, the East of England and London Consensus is experiencing a particularly sharp slowdown in new sales, the website said.

Zoopla said house price growth in southern areas of England has “virtually ground to a halt”, limiting price rises.

But house price growth remains “strong” in areas including Scotland, Wales and the northern regions of England, it said. Northern Ireland has seen house prices rise by 7.6%.

Zoopla said the average time to find a buyer for a home is about 37 days, which increases to 45 days in London.

While the market for new business has started to slow, Zoopla estimates it has a pipeline of around 350,000 homes, worth more than £100 billion, that are working through the sales process.

It said it was the largest pipeline in four years since May 2021, “when the pandemic surge was in full swing”.

The report said: “Stable mortgage rates have brought more sellers into the market, many of whom are buyers, along with strong demand from first-time buyers.”

The website used its own data to create sales pipeline estimates for the UK market.

Richard Donnell, Executive Director of Zoopla, said: “The housing market is experiencing a slowdown in activity, but there are still serious sellers looking to buy a home and secure their next home purchase.

“Buying a home is a long process and there are record numbers of homes for sale, which means there are plenty of buyers looking for their next home. The downturn is modest and less severe than the impact of the 2022 mini-budget.

“It is early-stage buyers who are taking a cautious approach to new purchases ahead of the budget and those buying higher priced homes are being more cautious.

“The housing market is on track to have the highest number of housing sales since 2022 and home prices are set to be 1% to 1.5% higher at the end of the year than at the beginning of 2025.”

Guy Gittins, chief executive of estate agent Foxtons, said: “Although the market has clearly slowed in recent weeks, much of this reflects a natural pause as buyers and sellers take stock ahead of the November Budget.

“Once there is greater clarity around taxation and economic policy, we expect confidence to return quickly – particularly in London, where underlying demand remains strong and well-funded buyers are still active. The current downturn should therefore be seen as a temporary pause rather than a fundamental shift in market dynamics.”

Zoopla’s home sales data covers the four weeks through October 19, 2025, compared to the same period in 2024. Its house price data goes back to the end of September 2025.

The index measures changes in home prices when sales are agreed, not by asking prices.

According to Zoopla, the annual increase or decrease in house prices across the UK in September is as follows:

Northern Ireland, 7.6%

North West, 3.0%

Scotland, 2.7%

North East, 2.3%

Wales, 2.2%

West Midlands, 2.1%

Yorkshire and the Humber, 1.9%

East Midlands, 1.2%

Eastern England, 0.8%

London, 0.1%

Southeast, 0.0%

South West, minus 0.1%