A Market Balancing on Change
The UK property market in August feels caught between optimism and caution. Improved mortgage affordability has brought more buyers back to the table, with agreed sales running higher than last summer. Yet at the same time, sellers are facing growing pressure to price realistically, as buyers remain careful in the face of wider economic uncertainty.
Prices and Buyer Sentiment
Asking prices softened slightly this month, which is normal for late summer. But the bigger picture is that buyers are negotiating harder, and properties that come to market at the right level are the ones attracting attention. Many would-be movers are still holding back—waiting to see whether prices will ease further into the autumn.
Tax Reform on the Horizon
Talks of major property tax reform have added a fresh layer of uncertainty. Proposals to replace stamp duty with an annual levy, and to overhaul council tax, are under discussion. Nothing is confirmed yet, but even speculation is influencing decision-making, with some buyers choosing to pause while they wait for clarity.
Rental Market Pressures
Renters continue to feel the squeeze. Across England, affordability has worsened, with many tenants spending well over a third of their income on housing. In London, demand is particularly intense, keeping competition high for well-located and good-quality rentals. For landlords, this means properties are letting quickly, but tenants are increasingly vocal about value and standards.
London and the South East
London is expected to outpace the national average in price growth over the next year, though not evenly across all postcodes. Prime locations are mixed—some struggling with falling values, while others, especially family-friendly suburbs, remain resilient. The South West London market reflects this: realistic pricing is rewarded with strong interest, while over-ambitious listings linger.
Outlook
August is often a quieter month, but this year it feels like a pause before a potentially busy autumn. With affordability shifts, looming tax changes, and continued rental pressures, the market is adjusting to a new rhythm. For buyers, sellers, landlords, and tenants alike, clarity and preparation will be key as we move into September.
