Why demand has fallen for homes priced at more than £500,000
Demand for homes priced at more than £500,000 has fallen. This is why
- Demand for properties priced over £500,000 has softened in recent weeks, with buyer inquiries down 4 per cent and new listings down 7 per cent compared to a year ago.
- For homes exceeding £1 million, demand decreased by 11 per cent and new listings by 9 per cent, a trend that contrasts with the stable demand and supply observed in the broader housing market.
- This downturn in the higher-priced segment is largely due to some buyers adopting a 'wait and see' approach ahead of the November Budget and speculation regarding potential tax changes.
- House prices are increasing more rapidly in affordable areas, with annual inflation reaching 2.8 per cent for homes under £200,000, while southern England experiences weaker growth, often below 0.5 per cent.
- Despite hesitation at the top end, the overall housing market is set for the most sales since 2022, with stable fundamentals anticipated once fiscal policy is clarified.