‘Boxing Day bounce’ expected to boost housing market

The housing market could be set for a strong Boxing Day bounce this year as buyers who paused to see what the Budget would bring spring back into action.

Several rumours had been circulating about potential property taxes before the Budget – and with the Budget and Christmas being close together this year, some house hunters who had been hesitant may resume their searches once the distractions of Christmas Day are over.

Property website Rightmove often sees jumps in activity on its website on Boxing Day.

Colleen Babcock, a property expert at Rightmove, said: “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.

“This year, many of those who put their plans on hold over the last few months due to Budget uncertainty will also likely be looking to pick up where they left off.

“Our survey of over 10,000 potential movers showed nearly one in five were waiting to see the outcome of the Budget before resuming their moving plans.

“While those at the very top end of the market will still need to digest the potential implications of the new annual mansion tax, with no stamp duty reforms announced, we’re likely to see any mass market Budget pausers become Boxing Day bouncers.”

In the Budget, Chancellor Rachel Reeves announced a high-value council tax surcharge in England on homes above £2 million from April 2028.

There will be four price bands with the surcharge starting at £2,500 a year for properties worth more than £2 million, and rising to £7,500 for properties worth more than £5 million.

On Friday, property consultancy Knight Frank said the lifting of uncertainty in the Budget had triggered a marked shift in market sentiment.

The firm said it had observed renewed confidence among some buyers who had previously adopted a “wait-and-see approach”, with an uptick in the number of offers received.

It said clarity was starting to release suppressed demand that had accumulated during the period of speculation, with buyers now able to make informed decisions based on confirmed policies.

Tim Hyatt, head of residential, Knight Frank, said 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.”