The housing market is closing the year with noticeable shifts in pace and tone. Data from September still dominates headlines, but the reality in recent weeks is an even firmer move towards a buyer-friendly environment.
Sales Market Snapshot
In Tower Hamlets, sellers are still active, but with more realistic expectations. The UK housing market continues to rebalance this November, with conditions steadily shifting towards favouring buyers. The pace of new listings has slowed slightly, while buyer registrations and viewings have held up - signalling interest, but with a more measured approach.
Sellers who adapt to current expectations, by preparing their homes well and setting competitive prices, are more likely to secure offers.
Buyers are being more selective. With more choice and fewer bidding wars, buyers are negotiating harder and taking their time before committing. For sellers, this underlines the need to be market-ready from day one, especially when it comes to legal paperwork and presentation.
Transaction times remain a sticking point. Around a third of sales are still taking 17 weeks or more to complete, and this can lead to breakdowns in the chain - a frustration for everyone involved.
The message for November? A calmer market doesn’t mean a quiet one. Buyers are active, but cautious. Sellers can succeed, but only with clear strategy and flexibility. Preparation, pricing, and patience are the current watchwords for those looking to make a move before the year ends.
Rental Market Overview
Demand continues to outstrip supply in the lettings sector, and rents have climbed as a result. The passing of the Renters’ Rights Act is likely to add further pressure. Although the legislation is widely welcomed for improving security for tenants, many landlords are considering their positions. With rising regulation and costs, the exodus of private landlords could worsen the imbalance in 2025.
Budget Watch
The latest Budget sets out a rise of 2% across the basic, higher, and additional bands of tax on property income from April 2027. Once in place, the rates will move to 22%, 42%, and 47%.
Regional mayors are also being handed the option to charge an overnight visitor levy. Wales has already signalled a £1.30-per-night model, while Scotland is looking at a 5% accommodation charge. A consultation will shape how the English version should work.
These shifts add to a long list of changes from the past decade that have steadily squeezed returns for private landlords - including the mortgage interest relief overhaul, extra stamp duty for additional homes, tighter capital gains tax allowances, and the arrival of the Renters’ Rights Act.
With earnings from rented homes being chipped away year after year, the pool of available rental stock is likely to thin out over time. When demand keeps rising and supply shrinks, rents tend to follow an upward path.
A new High Value Council Tax Surcharge is lined up for April 2028. It’ll apply to homes worth more than £2 million, with annual charges running between £2,500 and £7,500 depending on the property’s band.
Even with this in mind, average UK property values are still projected to climb from around £260,000 in 2024 to just below £305,000 by 2030. From 2026 onwards, annual growth is expected to hover at roughly 2.5%, echoing general wage growth.
Delays, collapsed chains, and clunky processes remain a persistent headache for anyone moving home and until those issues are properly addressed, they’ll continue to slow things down.
Why Winter Can Be a Great Time to Buy
It may not feel like the ideal season to house-hunt, but winter offers some real advantages. Competition is lower, especially in the run-up to Christmas, and serious sellers are often more open to offers.
You’ll see homes at their most ‘honest’ in the winter - no sunlight tricks or blooming gardens to hide any flaws.
Energy efficiency becomes clearer too. You’ll get a true sense of warmth, insulation, and comfort. And neighbourhoods reveal their real character, minus the summer bustle.
Even completions may move more quickly, with fewer sales clogging up the system. And if you don’t find your new place before Christmas, remember the Boxing Day boom: 26th December typically sees a surge in new listings.
In short, winter might just be the hidden gem of the home-buying calendar!
Final Thoughts
Buyers in Tower Hamlets: You’re in the strongest position in years. With more homes available and sellers more flexible, this is a good time to act.
Sellers: The market is still moving, but you need to be sharp. Price realistically, prep thoroughly, and expect buyers to want to negotiate.
Landlords: Compliance and communication are key. Reinforce relationships with tenants and seek advice on your long-term strategy post-legislation.
City Realtor is here to support your next move in Tower Hamlets. Call 0207 790 7702 or email admin@cityrealtor.co.uk to speak with our team.
Note: The information in this article is based on data as of September /October 2025 and may change. Always seek professional advice for specific circumstances.
What Next?
Do you require a valuation or no-obligation advice on buying or selling a property in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.
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