With purchaser consideration unusually scattered, sellers are lowering asking costs extra sharply than regular to draw bargain-hunting consumers, in accordance with the most recent Rightmove Home Value Index.
Knowledge for November exhibits that common new vendor asking costs fell by 1.8% (£6,591) to £364,833, in contrast with the ten-year November common decline of 1.1%. This represents the most important worth drop at the moment of yr since 2012.
The excessive variety of properties in the marketplace continues to use downward strain on costs, whereas uncertainty across the upcoming Price range is affecting consumers’ confidence and housing affordability. These elements are combining with the standard seasonal slowdown, inflicting the Christmas lull to reach sooner than typical.
Sellers who’re already in the marketplace are responding by adjusting their costs extra aggressively in an effort to face out to consumers.
Greater than a 3rd (34%) of properties in the marketplace have had their asking costs decreased, with the common discount reaching 7%—each figures the very best since February 2024. The market stays cautious, with hypothesis across the upcoming Price range, significantly relating to new property taxes on the higher finish, fuelling uncertainty amongst sellers and consumers alike.
Rightmove’s Colleen Babcock stated: “The last decade-high variety of properties out there in the marketplace continues to limit worth progress, with many new sellers eager to keep away from standing out by over-pricing in contrast with their competitors. The Price range is a giant distraction, and is later within the yr than typical, with many would-be consumers ready to see how their funds might be impacted.
“It seems that the standard lull we’d see round Christmas time has arrived early this yr, and sellers who’re eager to maneuver are having to work particularly onerous to entice consumers with aggressive pricing. Which means common new vendor asking costs are actually 0.5%, or £1,759 cheaper than a yr in the past.
“As well as, a 3rd of properties already in the marketplace on the market have had their asking worth decreased, with a median discount of seven%, additional illustrating that this can be a consumers’ market.”
The variety of gross sales agreed for properties priced over £2m, which might be topic to the rumoured mansion tax, is down by 13% in comparison with the identical interval final yr. Rising hypothesis that the federal government will look to extend taxes on these properties, accounting for round 1% of the market, has led to some consumers on this worth band ready to see what the Price range brings. The variety of new sellers coming to market on this worth bracket can also be down by 9%, a bigger drop than in lower-priced market sectors.
It’s the same story for properties priced between £500,000 and £2m, which might be impacted by rumoured stamp obligation modifications in England, and a few additionally by capital positive aspects tax on properties bought for over £1.5m. Gross sales agreed on this worth vary are down by 8% year-on-year, a smaller drop than the £2m+ sector, however a bigger decline than the general common this month of a 5% year-on-year fall in agreed gross sales.
In the meantime, properties priced underneath £500,000, accounting for about 75% of the market, have proved extra resilient, with movers extra more likely to be carrying on as regular. The variety of gross sales agreed on this sector is down by solely 4% in comparison with this time final yr.
Whereas properties on this worth bracket haven’t but been the main target of any particular property tax rumours, the upcoming Price range is probably going nonetheless inflicting some normal jitters round how private funds and affordability might be affected.
It’s additionally necessary to notice that this knowledge for the complete month of October is evaluating with a robust month final yr the place gross sales exercise was ramping up, significantly within the south of England, in anticipation of the stamp obligation will increase in England from April 2025. That is contributing to the downward year-on-year exercise tendencies, however throughout the entire yr thus far the general variety of gross sales being agreed continues to be up by 4% on the identical interval in 2024.
In addition to the forthcoming Price range, many would-be home-movers could have their eyes on the mortgage price pattern and the way their affordability is affected. The common two-year mounted mortgage price is presently 4.41%, which whereas down from 5.06% at the moment final yr, has been slower to fall throughout 2025 than many predicted. Although the choice to carry the Financial institution Price in November moderately than reduce it is going to be disappointing to movers, there may be nonetheless a very good probability of a price reduce in December, which might be a welcome early Christmas current for movers.
Babcock added: “Rumours of the contents of the forthcoming Price range are affecting the market, as we’re seeing a larger hesitation in gross sales exercise, particularly on the higher finish, which has been the main target of a lot of the dialogue. Whereas there may be additionally a normal unease at how the Price range could impression private funds, nearly all of house strikes can be unaffected by the rumoured modifications to property taxes.
“Falling mortgage charges and rising wages have boosted purchaser affordability, however the market additionally wants additional Financial institution Price reduce and fewer uncertainty about taxes. If we are able to see some mortgage price reductions over the following few weeks, supported by a December Financial institution Price reduce, we may begin 2026 on a constructive be aware with the top of the extended Price range hiatus lifting the gloomy ambiance of latest weeks.”
Property trade reacts to new Rightmove Home Value Index
