Average new seller asking prices have fallen this month by 1.8%, or £6,591, to £364,833. This compares to an average drop over the previous ten years of 1.1% in November, and is the largest fall in prices at this time of year since 2012, new data released today by Rightmove shows. 

With buyer demand at a historic low for this time of year, sellers who have already come to market are reducing their asking prices by more than the norm, as they attempt to entice bargain-hunting purchasers.

Over a third (34%) of homes available for sale have had an asking price reduction, with the average size of price reduction being 7%. Both figures are the highest since February 2024.

The market is hesitant, with the upcoming Budget fuelling uncertainty, especially at the upper end, which has been the main focus of speculation around new property taxes.

Christmas lull hits early as house prices drop amid budget uncertainty – Property Industry Eye

Industry reaction: 

Nick Leeming, Chairman of Jackson-Stops: “For prime country houses, it has been a market of two halves in November so far. Whilst some have chosen to wait for clarity after the Budget – whatever news that may bring – others have accelerated their transaction timeframes in order to exchange before the 26th and avoid any surprises. Wider caution among buyers of higher valued property in the run-up to the Budget reflects the variety of trailed policies from the government, alongside a decade-high level of property listings softening sellers’ pricing power. We saw a similar level of caution from the Bank of England’s decision to hold interest rates in November, just as movers wait with calculators in hand to see if a reset in tax could shift the numbers and impact any immediate plans.”

“However, supply and demand still remain fundamentally stable across the national picture, reflected in relatively stable transaction figures and continued listings. Regional disparities are becoming more pronounced. We’re seeing unseasonably high enquiries in places like Exeter, Chester and Cornwall.

“For now, we have a balanced if cautious market, with a pragmatic commitment from buyers and sellers to move forward. The housing market can take comfort in continued completions and stable house prices. For those looking further ahead to an early 2026 move, getting your property ready for a new year move is a tactic that transcends political announcements. Those ready to adapt and take a long-term view will be best placed when the dust settles.”

Jeremy Leaf, north London estate agent: “These figures, though of course reflecting asking rather than sale prices, reinforce the message given by recent improving mortgage approval numbers, as well as what we’ve seen on the ground. Seller expectations have inevitably softened with budget tax increases certainly on the way and so much more choice of property for buyers.

“However, our sale prices have certainly not collapsed. The overwhelming majority of existing sales are continuing, albeit more cautiously, while both parties seek to find a ‘new normal’.

“As the big day approaches, we’ve noticed most aspiring buyers and sellers becoming more serious and trying to adjust their sights in anticipation of a better understanding of the likely impact of the changes.”

Adam Feather, director, Robert Anthony Estate Agents: “The downward trend in house prices reflects the wider uncertainty facing the UK economy at the moment. This fall can be attributed to increasing housing supply and weaker buyer demand.

“Falling house prices should help boost affordability across the market, at a time when lending conditions are becoming more favourable, supported by interest rates that remain at their lowest since mid-2023. If rates further next month, this should incentivise borrowing, as more prospective homeowners and investors look to capitalise on this environment next year.”

Bertie Russell, MD at Russell Simpson: “Typically the sales market in prime central London is made up of a variety of buyer segments with a wide range of nationalities, needs and requirements, with wealth created and held in a vast variety of industries and currencies. With the looming Budget, needs-based buyers are the top category of most active buyers in the market. We are starting to see more investors and pied-à-terre buyers looking, as well as a larger swathe of US buyers, who seem to be less impacted by tax changes from 2024 and less concerned about the impending 2025 Budget. The uncertainty created by the Budget is forcing some of the other segments to pause their search or hold off from making offers until there is confirmed news. Potential sellers are also waiting to see what happens before confirming their plans, meaning we are seeing fewer potential sellers than usual at this time of year and releasing fewer properties to market.

“Having experienced many elections, Budgets and other economic or political speed bumps like this in the past, the anticipation and the unknown have always been worse than the result. I would predict that this slight slowdown from buyers and sellers in the autumn market of this year will likely lead to a busy few weeks before Christmas and more definitive action taken by both buyers and sellers in the new year.”

James Nightingall, founder of HomeFinder AI: “Property values always fluctuate to a certain degree but we are unlikely to see drastic changes this month as buyers stay put due to fear over the Autumn Budget impact. Depending on what the Chancellor will announce, buyer and seller activity could pick up over the coming months but one thing is clear – the property market has not faced such instability amid political uncertainty in a long time.”

Tomer Aboody, director of specialist lender MT Finance: “With the never-ending negative sentiment surrounding the budget, sellers are reducing their price expectations in order to encourage buyer interest.

“As the budget looms, and with it the potential of multiple parts of the market being impacted, many would-be buyers are playing the waiting game to see what the fallout is and the impact on their own purchases.

“Hopefully, another rate reduction in forthcoming months will help reduce the impact of any increases in stamp duty or inflation.”

Christmas lull hits early as house prices drop amid budget uncertainty