Speculation around property taxes ahead of the Budget contributed to a fall in home buyer demand and sales agreed in recent weeks, according to Zoopla.

It said house prices had recorded an annual fall in London and southern England for the first time in 18 months.

House prices have continued to increase in more affordable areas, the website said.

Zoopla said rumours of taxes, possibly on homes valued at more than £500,000, in the run-up to the Budget , created uncertainty across the housing market. It recorded a 12% fall in buyer demand and fewer sales agreed in the four weeks to November 23, compared with last year.

But the website said that measures directly impacting the housing market had proved less significant than many homeowners had feared.

In the Budget on Wednesday, the Go

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