At the end of October 2025, the UK residential property market stands at a pivotal juncture, shaped by seasonal dynamics and landmark legislative reform. While the sales market continues to grapple with affordability pressures and cautious buyer sentiment, particularly ahead of the autumn budget statement from the Chancellor on November 26th, the lettings sector is braced for transformative change following the Royal Assent of the Renters’ Rights Bill.
October traditionally marks a slowing down in sales activity, but this year this has been exasperated by uncertainty over proposals that may emerge in the Chancellors autumn budget. There have been many rumours of potential changes to taxation that are under consideration and with interest rates remaining relatively high and inflationary pressures easing only gradually, many prospective sellers and buyers have adopted a wait-and-see approach.
Transaction volumes dipped slightly in October compared to September, and price growth remained subdued across much of England. However, pockets of resilience were evident in commuter towns and lifestyle-driven locations such as the Cotswolds and coastal Dorset, where demand for well-presented family homes persisted.
Estate agents report that while viewing levels remain steady, conversions to sales were slower, reflecting buyer caution and tighter lending criteria. Sellers increasingly adjusted pricing expectations, leading to a modest uptick in agreed sales in the latter half of the month. The market’s underlying fundamentals—low housing supply and demographic demand—continue to support medium-term stability, but short-term sentiment remains fragile.
The lettings sector, meanwhile, has entered a period of significant transition. On 27th October, the Renters’ Rights Bill received Royal Assent, marking the most substantial overhaul of England’s private rented sector in over three decades. The legislation abolishes Section 21 “no-fault” evictions, introduces open-ended tenancies, caps rent increases, and enforces a national Decent Homes Standard.
Reactions across the industry are mixed. Tenant advocacy groups are hailing the reforms as a long-overdue rebalancing of power, while many landlords have expressed concern over increased regulatory burdens and the potential impact on investment viability. Some institutional landlords have welcomed the changes, citing improved standards and long-term stability.
In the short term, uncertainty lingers. Letting agents report a flurry of activity as landlords sought to review portfolios and adjust tenancy agreements ahead of implementation, expected in early 2026. Rental demand remained high, driven by affordability constraints in the sales market, but supply is tightening as some landlords consider exiting the sector.
As the market heads into winter, stakeholders across sales and lettings are recalibrating. The Renters’ Rights Bill sets the stage for a more regulated and tenant-focused rental landscape, while the sales market awaits clearer economic signals. Both sectors face challenges—but also opportunities—as they adapt to a new era of housing policy.
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Darren Murphy
