The Rightmove data shows that this larger than usual December drop means that prices are 0.6% (-£2,059) lower at the end of 2025 than in 2024.

Rightmove predicts a bigger than usual Boxing Day Bounce as those who paused due to Budget uncertainty are set to join the post-Christmas boost in home-moving activity.

It found the number of top-end London sellers up by 24% week-on-week.

In addition, the number of new sellers coming to market in the first half of 2025 was 9% ahead of the first half of 2024, which reversed to 4% below 2024 across the second half of this year.

Buyer demand was also 3% ahead of 2024 across the first half of the year, but remained 6% behind in the second half.

But Rightmove highlights it’s still been a more positive year overall for sales, with the number of sales agreed 3% higher than in 2024.

Improved buyer affordability and plenty of choice for buyers suggests a market more like the encouraging first half of this year rather than the second half in 2026.

Rightmove predicts that new seller asking prices will rise by 2%.

The average two-year fixed rate is now 4.33% compared to 5.08% last year.

With house prices now cheaper than a year ago, rising average wages and a relaxing of lending criteria, we predict an activity rebound to kick start 2026

Rightmove property expert Colleen Babcock says: “Lower price growth supported buyer affordability and drove activity in the first half of the year, even after the April stamp duty deadline in England.”

“In the second half of 2025, uncertainty caused by rumours of property tax changes in November’s Budget swirled, some from as early as August. This had an impact on pricing and activity, as sellers tried to entice nervous buyers.”

“The market will soon benefit from the traditional boost in home-moving activity from Boxing Day. Rightmove’s Boxing Day Bounce is an annual event where we see many begin or resume their plans to move after the distraction of Christmas.”

“With the turkey and trimmings barely off the table, each year we see people heading straight to Rightmove to browse the fresh listings for sale and imagine how different next Christmas could look.”

“With market conditions supporting higher levels of activity , and a hopefully more certain economic environment, we forecast a better year for price growth in 2026 with a strong rebound in activity to kick start the year.”

“However, with buyer choice remaining high, sellers will still need to come to the market at tempting prices to attract attention and do all that they can to ensure that their property is presented as well as possible.”

“A more stable 2026 would be good for buyer confidence, which in turn would further boost activity levels, leading to a modest price increase.”

Meanwhile, Together managing director of intermediary sales Tanya Elmaz adds: “Another fall in house prices indicates how delicate buyer confidence was in the run up to the Budget – and how the government hasn’t done enough to stimulate the market.”

“Following all the tax changes, questions remain as to whether tax changes to rental income and the new mansion tax will slow momentum in the market over the long term.”

“The mansion tax risks forcing people to sell-up on homes which they suddenly can’t afford due to surcharges, creating downward pressure on prices. The additional 2% income tax for landlords may force more of them to exit the market entirely, damaging the essential UK rental market and reducing house prices further.”

“Nevertheless, a strong chance of an interest rate cut in December could be a positive way to see out the year as it may lead to lower borrowing costs.”