Average new seller asking prices fell by 1.8% (-£6,589) this month to £364,833. This is a larger-than-usual November drop, according to the latest Rightmove House Price Index, as the decade-high number of homes for sale and Budget hiatus has added to the seasonal slowdown in new seller pricing.
In addition, asking price reductions of homes already on the market are at their highest level since February 2024, as sellers try to tempt bargain-hunting buyers.
According to Rightmove speculation about the contents of the Budget is fuelling uncertainty across much of the market, especially at the upper end where there are ongoing rumours of potentially costly property tax increases.
Sales agreed for £2m-plus homes, which are the subject of a potential mansion tax, are down 13% year-on-year; and homes priced between £500,000 and £2m, which would be impacted by potential stamp duty changes in England, or perhaps the rumoured capital gains tax, have seen sales agreed drop by 8% year-on-year.
Budget jitters
The under £500,000 market has been less impacted, with sales agreed down by only 4% on this time last year. This mass-market sector is likely being unsettled by general Budget jitters rather than specific policy rumours.
Despite these downward trends across the month of October – which compares to a strong month at this time last year – the year to date still shows the number of sales being agreed at 4% above the same period in 2024.
The average two-year fixed mortgage rate is 4.41%, compared to 5.06% at this time last year. Falling interest rates and rising wages have boosted affordability, but the market still needs further Bank Rate cuts and less uncertainty about taxes
Commenting on the latest figures Rightmove property expert Colleen Babcock said: “The Budget is a big distraction, and is later in the year than usual, with many would-be buyers waiting to see how their finances will be impacted. It appears that the usual lull we’d see around Christmas time has arrived early this year, and sellers who are keen to move are having to work especially hard to entice buyers with competitive pricing.”
Se added: “This means that average new seller asking prices are now 0.5%, or £1,759 cheaper than a year ago. In addition, a third of homes already on the market for sale have had their asking price reduced, with an average reduction of 7%, further illustrating that this is a buyers’ market.”
Former Rics residential chairman and London estate agent Jeremy Leaf, said: “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.”
MT Finance director Tomer Aboody commented: “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.”
He added: “Hopefully, another rate reduction in forthcoming months will help reduce the impact of any increases in stamp duty or inflation.”
