Common new vendor asking costs fell by 1.8% (£6,695) in December to £358,138, marking a larger-than-usual seasonal drop and leaving costs 0.6% (£2,059) decrease on the finish of 2025 in contrast with 2024.
Market exercise softened within the second half of the yr, with uncertainty linked to hypothesis round potential property tax rises forward of November’s Funds weighing on each pricing and demand from as early as late summer time.
Regardless of the slowdown, total market exercise remained barely stronger, with the variety of gross sales agreed ending the yr 3% increased than in 2024.
Trade response:
Jeremy Leaf, north London property agent: “Our expertise of the post-Funds interval doesn’t chime with Rightmove’s however maybe that’s as a result of the UK’s largest property portal measures asking or aspirational costs relatively than values.
“On the bottom, we’ve observed many patrons and sellers have been sitting on their fingers, fearing the worst from the Chancellor, earlier than deciding whether or not to behave.
“The damp squib of a Funds has heartened these within the extra price-sensitive £500,000 to £1 million bracket who’re respiratory a sigh of aid. These in and across the ‘mansion tax’ ranges are usually proving extra cautious and never considering strikes until circumstances dictate – or not less than additional particulars of charging emerge. Because of this, we anticipate a two-tier market to develop within the early New 12 months with demand progressively growing for smaller houses notably if base charge is lowered sooner relatively than later.
“We usually discover Boxing Day generates a number of enquiries of which a big proportion are of comparatively poor high quality.
“We want to evaluate how the following quarter not less than is more likely to work out after we’ve had an opportunity to evaluate the motivation of the contemporary crop of patrons – in addition to the sellers. Values will likely be decided by affordability and the quantity of appropriately priced inventory in essentially the most sought-after ranges.”
James Nightingall, founding father of HomeFinder AI: “As soon as the festivities wind down, patrons lastly have the time and headspace to analysis the market, refine their finances and begin searching. Publish-Christmas is due to this fact a peak time for property searches on-line. Sellers additionally more and more select this era to launch new listings, with Boxing Day now a landmark date for properties going reside.”
Adam Feather, director, Robert Anthony Property Brokers: “The current Funds did little to stimulate development or enhance exercise within the housing market. Measures that may have inspired confidence amongst patrons and sellers have been notably absent, leaving the sector dealing with ongoing uncertainty.
For a lot of within the trade, the Funds was deeply disappointing and continued what’s more and more seen as this Labour authorities’s poor monitor report on housing. As a substitute of offering readability or help, it bolstered considerations that coverage selections are putting further stress available on the market at a time when confidence stays fragile.
With out focused intervention or a transparent long-term technique for housing, the Funds has achieved little to deal with the challenges dealing with the market or to encourage renewed momentum.
Claire Reynolds, UK head of gross sales at Strutt & Parker: “The weeks of hypothesis main as much as the Autumn Funds actually cooled the property market, particularly for these making discretionary strikes. Nevertheless, the temper shifted virtually immediately as soon as the day lastly arrived, with some proof of a ‘Funds bounce’ previously couple of weeks. Some sellers who had been ready on the sidelines have determined to launch earlier than Christmas – hoping to catch these scrolling by way of Rightmove between Christmas and New 12 months – whereas others are getting ready to return to market in early January. Readability has helped folks develop into extra decisive, and the Funds hasn’t deterred demand from both patrons or sellers. These indicators level to a stronger market heading into 2026.”
Phillip Sandbach, managing director at John German Property Brokers: “The yr was progressing fairly properly, then alongside got here the Funds hypothesis which actually put the brakes on, notably on the listings aspect. Whereas gross sales have been nonetheless being agreed throughout many of the market, the £1m + market which was the topic of a number of hypothesis did dry up.
“Following the Funds, which ultimately didn’t considerably affect the vast majority of the property market, we’ve got seen a marked uptick in exercise and a surge in exchanges too. With an anticipated drop in rates of interest, we expect a really busy begin to 2026.”
Jordan Halstead, CEO at Jordan & Halstead Property Brokers: “2025 has felt like two totally different markets. The primary half was busy and centered, however the final quarter slowed down as patrons and sellers paused to see what would possibly come out of the Funds. Offers haven’t dried up, however folks have taken longer to commit.
“Correctly priced houses are nonetheless promoting, those which have struggled have been the over-optimistic directions. Consumers pays truthful worth; they simply received’t chase fantasy costs. Trying forward, I feel 2026 will likely be regular with small rises. As soon as the political uncertainty of the Funds has cleared and other people really feel assured that charges are steady, the market will begin transferring extra freely once more.”
UK asking costs slide once more as market uncertainty persists
