Home sales fell by 2% annually in October – HMRC

The number of house sales in October was 2% lower than in the same month a year earlier, according to HM Revenue and Customs (HMRC) figures.

Across the UK, an estimated 98,450 home sales took place in October 2025, which was 2% lower than in October 2024 but 2% higher than in September 2025.

In the Budget on Wednesday, the Government 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.

The charge will sit on top of usual council tax and will be applied to property owners, rather than tenants.

The Government estimated that fewer than 1% of UK properties will be subject to the additional tax – but that it will raise more than £400 million in 2029-30.

Nick Leeming, chairman of Jackson-Stops, said: “Today’s transaction results show a mixed-bag; whilst there were reports of transactions pressing ahead to beat the Budget deadline, in the main we saw a market on pause.”

He added: “It is likely we will see more stock come to the market in the short-term, with minor price adjustments for properties just over the £2 million cliff edge.

“We might also see an increase in demand for homes under the tax limit, where buyers adjust budgets with household cashflow in mind. For the South East, this could create upward pressure on prices in the mid-tier or even lower-end property markets, leading to spillover effects for demand in new areas.

“Jackson-Stops’ national figures show a more selective market overall, but it’s far from a one-size-fits-all story. Outside the South East, the £500,000 to £800,000 bracket is bucking the trend, with momentum gathering pace – proof that some regions are very much putting their foot back on the gas. We have heard from agents across the country following the Budget that prime buyers are moving at pace with clarity now in mind.”

Jeremy Leaf, a north London estate agent said: “As affordability gradually improves, especially with another base rate cut looking likely, we expect transaction numbers to pick up.

“With the Budget out of the way, and mansion tax likely to raise relatively little additional revenue, especially given the deferred payment date, the impact on housing market activity should be minimal at worst.”

Sarah Coles, head of personal finance at Hargreaves Lansdown said: “The data reflects sales agreed months earlier, before the Budget rumour mill had fully cranked into action.”

She added: “The fact that the Budget didn’t deliver a major blow for buyers should help support sales in the coming months. News of the so-called mansion tax, with an annual charge on properties worth more than £2 million, may well make a difference at the top end of the market, and some of that will trickle down.

“However, it’s nowhere near the kind of impact that a wide-ranging and expensive tax could have had.”

Iain McKenzie, chief executive of the Guild of Property Professionals, said: “Now that the Budget has been confirmed, thousands of movers finally have the clarity they need to progress.

“What we’re seeing beneath the headlines is a market underpinned by needs-based buyers and sellers, those upsizing, downsizing, or moving for lifestyle reasons, who have continued to transact.”

Jonathan Handford, managing director at Fine & Country, said: “Sellers who price their homes realistically and present them well are seeing strong interest, as buyers continue to prioritise quality and value.

“The increased choice of stock in many areas means buyers are being more selective than they were this time last year. However, this approach isn’t dampening activity, it’s simply encouraging a more considered approach.”

Jason Tebb, president of OnTheMarket, said: “With the Budget out of the way, uncertainty has been removed. Buyers and sellers can make decisions with confidence and proceed with transactions without worrying as to what may be round the corner.”