The average UK house price growth climbed to £271,000 in August, according to the latest Zoopla House Price Index.

This was an annual rise of 1.4%, equating to £3,870, compared to the average price of a home in August last year.

Zoopla suggested that UK homebuyers had “returned to the market in strength” over the past two years, driving a steady recovery in housing sales.

Figures have shown that the average estate agent now has 36 homes for sale, which is 20% more than in 2023 and 8% higher than at this point last year. The property portal also stated that sales are also rising as buyers look to secure homes this autumn.

However, Zoopla added that recent speculation about possible tax changes in the next Budget has started to affect activity.

“Pre-Budget speculation over possible tax changes is impacting market activity for homes over £500,000,” Zoopla executive director, Richard Donnell, commented. “The rest of the mainstream housing market is carrying on, largely unaffected.”

Zoopla said the uncertainty began in August, amid media report on several policy papers. These included ideas such as scrapping stamp duty and replacing it with an annual property tax on homes worth over £500,000, a council tax revaluation, as well as capital gains tax on sales above £1.5m.

However, Zoopla noted that none of these proposals have come directly from the Government, suggesting they were described as “options ministers are considering”, which has still been enough to unsettle parts of the housing market.

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