Why demand has fallen for properties priced at greater than £500,000

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Your assist makes all of the distinction. Learn extra House purchaser demand for properties priced at greater than £500,000 has softened in current weeks, in response to property portal Zoopla.

Primarily based on purchaser inquiries, demand for properties priced at greater than £500,000 has fallen in current weeks by 4 per cent, with a seven per cent lower in new listings, in contrast with a 12 months earlier.

After analysing the 5 weeks to September 21 and evaluating it with the identical interval a 12 months earlier, Zoopla additionally discovered the demand for properties priced at greater than £1 million had additionally fallen by 11 per cent, whereas new listings had been down by 9 per cent.

The report mentioned that the information for higher-priced properties “is in sharp distinction to the remainder of the market, the place demand and provide stay steady”.

The web site additionally mentioned that home costs are rising quicker in additional reasonably priced areas, with “static costs” in markets over £500,000.

Some patrons are adopting a “wait and see” method forward of the November Funds, the web site mentioned.

<img src="https://static.independent.co.uk/2025/02/14/9/26/iStock-1280117468.jpeg" srcset="https://static.independent.co.uk/2025/02/14/9/26/iStock-1280117468.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/02/14/9/26/iStock-1280117468.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The number of sales agreed across the UK has been rising" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The variety of gross sales agreed throughout the UK has been rising (Getty/iStock) It additionally mentioned that in London, the South East, South West and japanese England, larger stamp responsibility prices and affordability constraints are having a dampening impact on home value progress.

Nevertheless, the variety of gross sales agreed throughout the UK has been rising as patrons look to capitalise on the autumn market.

The report mentioned: “One in three properties at present available on the market on the market is priced above £500,000, with 8 per cent over £1 million.”

Annual home value inflation was working at 1.4 per cent in August, however in markets with common home costs under £200,000 it was working at twice this charge, at 2.8 per cent, the report mentioned.

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It added: “Home value inflation stays weakest throughout southern England with costs rising by lower than 0.5 per cent throughout London, the South East, the South West and the east of England.

“All different areas of the UK are registering annual value inflation of between 1.4 per cent and seven.9 per cent in Northern Eire. Home costs within the North West are 3.1 per cent larger.”

Zoopla recorded home costs as rising by greater than 4 per cent in 5 postal areas – Kirkcaldy (KY) in Scotland, Oldham (OL) in north-west England, Tweeddale (TD) by the Scottish Borders, Motherwell (ML) in Scotland and Llandrindod Wells (LD) in Wales.

<img src="https://static.independent.co.uk/2025/09/27/16/452478ad3701c981b4cfecdc9fbcbc41Y29udGVudHNlYXJjaGFwaSwxNzU5MDY4MzQ1-2.78024140.jpg" srcset="https://static.independent.co.uk/2025/09/27/16/452478ad3701c981b4cfecdc9fbcbc41Y29udGVudHNlYXJjaGFwaSwxNzU5MDY4MzQ1-2.78024140.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/09/27/16/452478ad3701c981b4cfecdc9fbcbc41Y29udGVudHNlYXJjaGFwaSwxNzU5MDY4MzQ1-2.78024140.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Some buyers are adopting a “wait and see” approach ahead of the November Budget, according to Zoopla" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Some patrons are adopting a “wait and see” method forward of the November Funds, in response to Zoopla (PA) Costs proceed to register annual falls of greater than 1 per cent throughout southern England, led by Bournemouth (BH), Truro (TR), Exeter (EX) and Torquay (TQ) alongside elements of central London (WC and EC), the report mentioned.

Richard Donnell, government director at Zoopla, mentioned: “The housing market has skilled a sustained enhance in market exercise over the past 18 months as mortgage charges have stabilised.

“The market is on observe for essentially the most gross sales since 2022, however with out speedy home value inflation.

“Pre-Funds hypothesis over doable tax change is a daily incidence however this summer season it has been larger than regular which has led some patrons and sellers to delay residence transferring choices for properties priced over £500,000. The broader market stays largely unaffected.”

Mr Donnell added that “critical patrons” ought to keep in mind that “whereas the Funds is 2 months away it takes, on common, six to seven months to discover a property and full a sale”.

Kevin Shaw, nationwide gross sales managing director at property company group and property companies supplier LRG (Leaders Romans Group), mentioned: “The housing market has shifted in favour of patrons, with sellers more and more keen to align with brokers’ valuations and to barter on value.

“That steadiness is welcome for a lot of purchasers, notably first-time patrons who seem undeterred by April’s enhance in stamp responsibility and have benefited from decrease rates of interest.

“On the higher finish of the market, hypothesis over property tax has created hesitation.”

Mr Shaw added: “Whereas tax hypothesis could depart 2025 comparatively flat general, the basics are steady. A stronger spring market ought to emerge as soon as fiscal coverage is clarified and confidence returns.”