Core Insights - The UK real estate market is experiencing an unexpected slowdown during the traditionally active autumn season, primarily due to concerns over potential property tax increases in the upcoming budget announcement by Chancellor Rachel Reeves [1][2]. Group 1: Market Activity - Data from Rightmove indicates that both buyer and seller activity in September decreased by 5% year-on-year, with the anticipated seasonal boost post-summer failing to materialize [2]. - The average house price in October rose by only 0.3% to £371,422, significantly lower than the 1.1% average increase seen in the same period over the past decade [2]. Group 2: Tax Concerns - Speculation regarding potential tax hikes on high-value properties is causing many prospective movers, particularly homeowners in southern England, to adopt a wait-and-see approach until the budget is clarified [2]. - The Treasury is reportedly considering various tax proposals targeting high-value properties, including a new tax on homes priced over £500,000 and the removal of capital gains tax exemptions for first homes valued over £1.5 million [2]. Group 3: Market Dynamics - Despite a resilient market characterized by stable mortgage rates and lower property prices supporting transaction volumes, demand has weakened for the second consecutive year as budget speculation continues to create uncertainty [2]. - The Treasury has stated its commitment to increasing the construction of new homes by simplifying planning permissions and leveraging AI to expedite the process [2].