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Property market news
Yesterday’s budget brought clarity after months of speculation and gloomy forecasts.
While headlines predicted dramatic shifts, the reality for most home sellers and buyers is far more measured - the actual impact is nominal.
The most notable changes target landlords and the very top end of the property ladder. From April 2027, property income tax rates will rise by two percentage points, taking them to 22%, 42%, and 47% for basic, higher, and additional rate taxpayers. And from April 2028, homes valued above £2 million will face a new annual ‘mansion tax’ surcharge, ranging from £2,500 to £7,500 depending on value.
For the vast majority of movers, these measures will have little direct effect. After months of uncertainty, confidence is returning, and we expect a strong resurgence in market activity both before and after the Christmas break. For those considering a move, the outlook is far brighter than recent commentary.
Prices
Bristol overview
Over the last 12 months the average sales price in Bristol was £372,065.
The total value of sales was £1,795,142,040. 33% of sales in the past 12 months were flats, achieving an average sales price of £279,517.
Houses achieved an average price of £427,179. The highest value recorded by the Land Registry over the past 12 months was £1,250,000 for a flat and £4,800,000 for a house.
Demand
We're sure the Autumn Budget will inject fresh confidence into the market after months of uncertainty and speculation.
While some movers had been waiting to see what November would bring, the reality is reassuring - the changes have minimal impact on most buyers and sellers, and the outlook is positive.
There are now more homes on the market in Bristol than we’ve seen in over a decade, giving buyers far greater choice than in recent years. Sellers who are serious about moving have already adjusted their price expectations, creating realistic opportunities for transactions to progress.
Looking at 2025 year-to-date, new buyer demand is up 2% compared to the same period in 2024, and we expect this trend to accelerate as confidence returns. With renewed optimism and increased choice, we anticipate a strong uplift in activity both before and after the Christmas break.
Lettings news
Bristol overview
Over the last 12 months, the average rent achieved for homes let in Bristol was £1,449 per month. This is a +4.2% change on the previous 12 month period.
71% of homes let in the past 12 months were flats, achieving an average rental value of £1,391 per month. Houses achieved an average rent of £1,616 per month. 27% of renters are aged between 25 and 29.
Overall, demand remains strong, but the market is more balanced than in previous years, with a slight increase in available rental properties.
Mortgages
The Bank of England held the base rate at 4.00% at its November 6th MPC meeting, marking the second consecutive hold after two earlier cuts this year from a peak of 4.50%.
Inflation has eased slightly to 3.6%, down from 3.8% in September, but remains above the 2% target—hence the cautious approach to further rate reductions.
Mortgage rates continue to trend downward. The average 2-year fixed rate is now around 4.36%, down from over 6.8% at its 2023 peak, while 5-year fixed rates typically range between 4.39% and 4.9%, depending on LTV and lender. The best deals for low LTV borrowers are even sharper, with some 2-year fixes near 3.79% and 5-year fixes around 3.95%. Tracker and SVR mortgages remain closely tied to the 4.00% base rate.
With inflation cooling and speculation of a possible rate cut in December, conditions are improving for borrowers. Combined with increased housing supply and renewed confidence post-Budget, the outlook for the property market heading into 2026 is encouraging.
Property market outlook
Market outlook for 2025 and beyond. Cautious optimism.
Looking ahead, the consensus among property market experts is for steady, modest growth rather than any dramatic swings. After the slight dip in momentum recently, Bristol’s housing market is expected to gently pick up pace through late 2025 and into 2026.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft by Price Hubble, Land Registry, ONS National House Price Index, DLUHC.