Recent figures from Rightmove indicate a decline in the UK property market, with asking prices decreasing by 1.8%—equivalent to £6,589—in November. This reduction places the average asking price for homes in the UK at £364,833. The timing coincides with expectations surrounding the upcoming budget announcement by Chancellor Rachel Reeves on 26 November, prompting speculation about potential changes to property taxes, particularly stamp duty, which have led to a sense of uncertainty among buyers.
The report highlights that price drops in November are typically common, averaging a 1.1% decrease over the last decade. However, the current decline represents the most significant decrease for this month since 2012, with 34% of homes listed on the market reducing their asking prices by an average of 7%. These figures are the highest observed since February 2024.
Experts attribute this downturn partly to fears about possible budget proposals, especially concerning higher-value properties. Colleen Babcock, a property analyst at Rightmove, noted that the substantial number of homes available has constrained price growth, suggesting that many sellers are cautious not to overprice their homes.
The report observed that homes priced below £500,000 have been less influenced by these budget speculations. Additionally, a separate forecast anticipates a slowdown in UK mortgage lending growth from 3.2% this year to 2.8% next year, driven by affordability challenges and a decline in housing demand.
The EY Item Club report indicated that the current economic environment remains uncertain, with expectations of further tax rises affecting financial services in the near future. However, it suggests that the dip in growth may be temporary, with a projected recovery in 2027 and 2028.
Source: https://www.theguardian.com/business/2025/nov/17/asking-prices-fall-as-uk-housing-market-hit-by-budget-speculation-rightmove-says