Quarter Three Market Update: Confidence Steadies, But Realism Reshapes The Market

November Q3 Market Update

Wokingham holds firm as buyers grow more value-driven.

Budget speculation and cost-of-living pressures test resilience.

Let’s start with an honest truth: the property market is not what it was.
Both buyers and sellers need to adapt to what’s clearly a new and emerging landscape.

That’s not to say it’s all doom and gloom — far from it. Homes are still selling and deals are still being agreed, but the story behind the statistics paints a more complex picture. Across the UK, agents are reporting similar challenges: more stock, more cautious buyers, an increase in fall-throughs, and a rise in down-valuations.

It’s a market that demands strategy, realism, and patience — and understanding these shifts is the first step to staying ahead.

A Quick Recap on Q2

Earlier in the year, confidence began to return following initial rate cuts and a strong start to 2025. That momentum carried into Q2, though affordability pressures and rising stock levels made buyers more selective.

Interest rates steadied at 4.25%, inflation hovered at 3.4% (still above the Bank of England’s 2% target), and around 30% of homes over £750,000 reduced their asking prices as realism returned to the market.

In Wokingham, well-presented homes continued to attract strong interest — proof that when strategy and presentation align, buyers still respond.

Has That Momentum Continued Into Q3?

In short — yes, but with caveats.
The need for smart strategy and accurate pricing has become more important than ever.

Rightmove reported that asking prices fell by 1.2% in July and 1.3% in August, while buyer enquiries rose 6% and agreed sales climbed 8% year-on-year. The Bank of England’s August rate cut to 4% hasn’t made a dramatic difference, and some lenders have since nudged rates back up due to global market pressures.

September brought the usual post-summer surge in listings and activity, maintaining its reputation as one of the busiest months in the property calendar.

At the upper end of the market, activity has outperformed early expectations. Stock levels have risen again — averaging just over 93,000 homes on the market, up 13% on last year and almost 80% higher than in 2022. It’s now the fifth consecutive year of stock growth, meaning buyers have far more choice than before.

Beneath the Headlines

Despite busy activity levels, the undercurrent tells a different story. Price reductions are at a five-year high, withdrawals are rising, and fall-throughs remain above average.

The market is active — but far from effortless. Negotiations are tougher, timelines are longer, and the difference between success and stagnation often comes down to preparation, pricing, and patience.

Why the Market Feels “Recession-Like”

Describing the current market as having a “recession-like feel” doesn’t refer to the economy itself, but to buyer behaviour.

Unlike the 2007–2008 financial crash, when banks stopped lending and property values plummeted overnight, today’s challenge is affordability. Buyers can still borrow, but rising living costs and higher rates have made them more cautious. Budgets have tightened, and this is reflected in how carefully buyers are choosing and negotiating.

We’re in a transitional phase — one where sellers are still adjusting to the new normal.

The Picture in Wokingham Borough

According to the Land Registry, sale prices in Wokingham dropped 1.8% in Q3, while transaction volumes fell 8.33%. These numbers suggest activity has slowed slightly in recent months.

However, it’s important to remember that Land Registry data lags behind the live market by several months. Real-time buyer behaviour shows a more competitive landscape, where value and presentation are key.

Properties launched at the wrong price point are struggling to gain traction — a reminder that the first few weeks of marketing are critical in a shifting market.

What’s Driving the Inconsistencies?

A mix of factors is contributing to the uncertainty we’re seeing.

Interest Rates & Cost of Living

While not historically high, today’s interest rates are significantly above what many homeowners have been used to. With the base rate climbing from 0.1% four years ago to 4%, those coming off fixed deals are facing repayments two to three times higher. Combined with rising living costs and modest wage growth, affordability remains a major constraint.

Budget Speculation

Uncertainty around the November Budget is also playing a part. Possible housing reforms are prompting hesitation from buyers and sellers alike. Depending on what’s announced — and how the market reacts in the run-up to Christmas — activity levels could fluctuate further.

What’s Being Discussed?

While nothing is confirmed, the following property-related reforms have been widely reported:

• Replacing Stamp Duty with an annual property tax — potentially around 0.54% of a home’s value each year, with extra charges for properties over £1m.

• Council Tax reform — moving away from outdated 1991 valuations to reflect current market values.

• A potential “mansion tax” — involving partial removal of Capital Gains Tax relief on main residences over £1.5m.

• Changes for landlords and investors — including extending National Insurance to rental income and closing company loopholes.

It’s clear that property wealth is under review — and the Treasury is exploring ways to increase revenue through housing rather than income or VAT adjustments.

The Long Road to Completion

Another growing issue is the time it takes to complete a sale once it’s agreed. What used to take 8–12 weeks can now stretch to 24, putting the UK well behind other countries.

The government has proposed reforms to speed this up, including:

• Providing more information upfront

• Introducing binding contracts earlier

• Expanding use of digital ID and online conveyancing tools

If executed properly, these changes could reduce delays and fall-throughs — though sellers may face slightly higher upfront preparation costs.

Looking Ahead

As we move into the final months of the year, the market remains price-sensitive but stable. Stock levels are higher, buyer behaviour is more value-driven, and speculation around the Budget continues to shape sentiment.

For sellers, realism and presentation are everything. Understanding your target buyer, pricing accurately, and marketing effectively will make all the difference in whether your home stands out — or sits still.

In Summary

The property market across the Wokingham Borough has undeniably shifted. While challenges remain, strong results are still achievable for sellers who understand where values now sit and position their homes correctly for today’s conditions.

Homes are selling — but success now depends on strategy, timing, and presentation more than ever.

Thinking About Moving?

If you’re planning a move — whether in the coming months or further down the line — now is a good time to start preparing.
Understanding the market, staying informed, and aligning your strategy with current trends will help ensure you’re ready when the right opportunity arises.