Property market rebounds as Budget gloom fades ahead of Boxing Day surge

The U.K. housing market is showing signs of revival after the Budget gloom, with a Boxing Day rebound expected as buyers resume planning for 2026. Property website Rightmove reported a 24% week-on-week surge in the number of top-end London properties being put on the market, a response to the Budget’s reduced impact on luxury homes. Rightmove also said new seller asking prices fell 1.8% in the last month to £358,138, reflecting budget uncertainty and the usual December lull when viewings slump over the holidays. Overall, house prices were down 0.6% or about £2,059 from December 2024 to end-2025.

Over the 19 days following the Budget, activity has spiked as sellers list, buyers view, and offers begin to flow. A share of those re-entering the market are people who paused their searches amid fears of tax changes. In a survey of 1,700 active property seekers by On The Market, 50% said the Budget ended up having no impact on their plans, 6% said they would accelerate them, 12% delayed, 3% cancelled, with the remainder unsure.

Property sentiment has two halves. Phillip Sandbach, managing director at John German Estate Agents in the Midlands, said: 'Following the Budget, which in the end didn’t significantly impact the majority of the property market, we have seen a marked uptick in activity and a surge in exchanges too.' Rightmove noted that a pre-Budget survey of 10,000 home hunters found nearly one in five were waiting for the Budget outcome to resume moves, and expect many to re-engage as new listings are released after Boxing Day. 'It’s likely that many of this group will be re-engaged by the number of new listings that are being held back ready for launch on or soon after Boxing Day,' Rightmove said. Estate agents such as Barney Coles of Artistry Property predicted a January rush, citing renewed enquiries for high-end and unique homes.

Mortgage costs are easing some of the negative pressure. Falling mortgage rates are giving borrowers more confidence to borrow, and first-time buyers and movers alike are tracking a possible Bank of England rate cut. Analysts had expected a move from 4% toward 3.75% when the BoE meets on December 18, which would further support demand in the market.

Even with a pickup in activity, price gains are not expected to be dramatic. Rightmove forecast a 2% rise in new seller asking prices over the year, but cautions that the market could remain oversupplied relative to demand. Jordan Halstead, CEO of Jordan & Halstead in Chester, said: 'Properly priced homes are still selling; the ones that have struggled are the over-optimistic instructions. Buyers will pay fair value; they just won’t chase fantasy prices.'

Market gaps remain in London and other regions. On The Market’s survey found that London buyers were not disproportionately affected by Labour's extra stamp duty surcharge on homes above £2 million, with only 2% citing it as a cancellation reason in their plans. Rightmove showed London prices fell 1.2% in the last month but were flat versus December 2024. Other regions fared worse, such as the North East, which posted a 5.1% monthly drop and was down 0.8% year-on-year.

Looking ahead, homeowners and buyers are being urged to prepare. For borrowers ending fixed-rate deals or seeking new mortgages, options should be explored promptly; brokers warn that rates can move quickly, so comparing offers now can help lock in favorable terms. Remortgaging early—six to nine months in advance—can be considered, though borrowers should balance upfront fees against long-term savings. For buyers with agreements in principle, securing a rate early helps establish a clear budget, while cautious pricing by sellers is advised to avoid extended negotiations. The swap between needs-based demand and price discipline is expected to shape activity in early 2026.

Overall, the housing market appears to be moving toward a more balanced footing: activity stabilizing after Budget-induced caution, with a steadier flow of transactions in the new year, and a price path expected to be flat to modestly higher as mortgage costs influence affordability and buyers' confidence evolves.