UK Housing Market Poised for ‘Boxing Day Bounce’ After Budget Clarity
London – A surge in activity is anticipated in the UK housing market starting Boxing Day, following the removal of uncertainty surrounding the recent budget, according to property experts. Colleen Babcock, a property expert at Rightmove, noted the typical post-Christmas uptick, stating, “We usually see a bounce in market activity from a quieter Christmas Day into a busier Boxing Day and New Year, as many get going with their New Year move.”
The expected increase is fueled not only by seasonal trends but also by prospective buyers who paused plans due to economic uncertainty. Rightmove’s survey of over 10,000 potential movers revealed that nearly one in five were waiting for the budget outcome before resuming their home-buying journeys.
While the introduction of a new annual mansion tax – a high-value council tax surcharge on homes above GBP2 million starting April 2028 – will require consideration for high-end buyers, the lack of stamp duty reforms is expected to encourage broader market participation. Babcock predicts, “with no stamp duty reforms announced, we’re likely to see any mass market budget pausers become boxing Day bouncers.”
The mansion tax will be structured in four price bands, beginning at GBP2,500 annually for properties exceeding GBP2 million, and escalating to GBP7,500 for those valued over GBP5 million.
Property consultancy Knight Frank reported a “marked shift in market sentiment” on Friday, attributing it to the budget’s clarity. The firm observed renewed confidence and an increase in offers from buyers previously adopting a “wait-and-see approach.” Tim Hyatt, head of residential at Knight Frank, stated on Friday, “With clarity on future policy changes, and downward pressure on pricing in recent years, many home buyers now see London and the wider prime country market as one which is offering real value.”
The firm indicated that the budget is releasing pent-up demand accumulated during the period of speculation, enabling buyers to make informed decisions.
Source: PA
