UK House Price Growth Slows Amid Budget Uncertainty and Market Cooling

UK house price growth slowed to 0.3% in October, down from 0.5% in September, amid uncertainty surrounding the upcoming government Budget and a weakening labor market. The average property value reached £272,226, reflecting a 2.4% annual increase, with buyers adopting a cautious "wait-and-see" approach due to speculation about potential property tax changes, including a possible mansion tax on homes over £2 million. Despite these headwinds, mortgage approvals rose to a nine-month high in September, and housing affordability is modestly improving as income growth outpaces house price rises. Experts characterize the market as resilient, expecting increased activity once the Budget is finalized and policy certainty is restored. Meanwhile, the prospect of a mansion tax has sparked controversy, with critics arguing it may deter investment and harm high-value markets, particularly in London. Compounding housing challenges, the Building Safety Regulator's stringent approval process has significantly delayed new home construction and renovations, notably in high-rise residential buildings, contributing to the lowest level of housebuilding in nearly a decade.