UK house prices fell 1.1% on a monthly basis in November, says Rightmove.

This, says the firm, means the housing market has returned to normal, with a 1.1% November drop being in line with the pre-pandemic years of 2015 to 2019.

It means that the average house price fell by £4,159, giving an average price of £366,999.

Annually, house prices went up 7.2%.

Rightmove adds that buyer demand remains historically high, being 4% greater than in 2019 this October, but it is 20% lower than seen during the same period last year. And first-time buyer demand is down 26% compared to last October. ‘Second stepper’ demand is also lower, by 17%.

Meanwhile, this October saw 8% of unsold properties on Rightmove post a discount, which is double the 4% of properties that took the same action in October 2021.

Rightmove director of property science Tim Bannister says: “The plethora of predictions about what might happen to prices next year comes at a time when much is still uncertain, but what is certain is that the exceptional price growth of the last two years is unsustainable against the economic headwinds and growing affordability constraints.

“Homeowners who come to market in the final few months of the year tend to price lower to attract buyers in the lead-up to Christmas, and we’re hearing from agents that both existing and new sellers understand that to sell in the current market they need to price competitively.

“During the market frenzy many agents said that they had to rip up the rule-book on valuing properties due to bidding wars, but now they’re back in more familiar territory, and pricing right first time is even more critical to securing a quick sale.”