House prices pause after seasonal bounce

House prices remain subdued across England and Wales as uncertainty from the Autumn Budget continues to weigh on the market.

e.surv house price index reveals average house prices £352,498, 4% lower than a year ago.

The announcement in the Autumn Budget on council tax surcharge on homes above £2 million will hit homes in London and the South East the hardest.

Interest rate cuts are expected

Rob Owens, head of research of e.surv, said: “After October’s seasonal bounce in transactions, the market paused in November as buyers awaited the Autumn Budget. Average selling prices held steady at around £352,500, signalling a period of consolidation rather than further decline.

“Regional patterns remain clear: southern England, led by London and the South East, continues to exert downward pressure, while northern regions show greater resilience.”

Mr Owens adds in 2026, further interest rates cuts are expected and the council tax surcharge review will shed light on how it may affect the high-end market.

“Looking ahead, the new Council Tax surcharge on homes above £2 million could reshape behaviour at the very top end, but it affects only around 0.5% of properties, 85% of which are in London and the South East.

“The consultation planned for early 2026 will reveal more (and not least the complexity of valuing a segment of the market where homes often lack many comparables), but the initial response has focused on the cliff edges between bands and not least the starting point of £2 million.

“With expectations of base‑rate cuts and steady wage growth, conditions are in place for a gradual firming as 2026 unfolds.”