Average new seller asking prices in the UK housing market have experienced a notable decline this November, falling by 1.8%, which amounts to an average reduction of £6,591. This drop is the largest seen at this time of year since 2012, surpassing the usual 1.1% average decrease historically recorded in November. According to Rightmove, this significant fall reflects a combination of a record-high supply of properties on the market and widespread uncertainty ahead of the upcoming Budget, which is casting doubt over personal finances and housing affordability.
The current overabundance of homes available for sale is exerting downward pressure on prices. Sellers are responding to subdued buyer activity by making larger-than-usual price reductions to attract bargain-hunting purchasers. Over a third (34%) of properties listed have already had their asking prices cut, with an average reduction of 7%, marking the highest levels since February 2024. This early onset of the usual Christmas market slowdown suggests buyers are more hesitant this year, taking a "wait and see" approach as they anticipate fiscal announcements.
The impact of the looming Budget is particularly pronounced in the higher-end market segments. Sales agreed on homes priced above £2 million, which would be affected by rumours of a new mansion tax, have dropped by 13% compared to last year. In this exclusive price bracket, both buyer demand and the number of new sellers coming to market have decreased, down 9%, as many await clarity on potential tax changes. Similarly, homes priced between £500,000 and £2 million are experiencing an 8% year-on-year decline in sales agreed. These properties are also likely to be affected by proposed stamp duty and capital gains tax adjustments.
In contrast, the more affordable housing sector, properties under £500,000 that make up approximately 75% of the market, has shown greater resilience, with a relatively modest 4% drop in sales agreed year-on-year. This segment has not been the target of specific tax speculations, though general concerns around the Budget’s broader economic implications continue to influence buyer behaviour.
It is important to contextualise these trends within recent market activity. The current figures are partly measured against a strong performance in the same period last year, when buyers accelerated purchases before impending stamp duty hikes scheduled for April 2025. Year-to-date, the total number of sales agreed remains 4% higher than in 2024, despite the recent slowdown.
Additional factors influencing the market include mortgage lending costs. The average two-year fixed mortgage rate currently stands at 4.41%, down from 5.06% a year ago. However, the reduction in rates throughout 2025 has been slower than some anticipated. Although the Bank of England’s decision to maintain the Bank Rate in November disappointed many potential buyers hoping for rate cuts, there remains optimism for a possible cut in December, which could stimulate market activity as the year ends.
Beyond Rightmove’s data, wider industry indicators corroborate the slowdown affecting the housing market. The Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey reported a sharp decline in new buyer enquiries in October 2025, reaching a net balance of -24%, the lowest level since April. This trend is evident nationwide and reflects a common hesitancy among households who are postponing buying decisions until the government’s fiscal plans are finalized and uncertainties from the Budget are dispelled.
In summary, the UK housing market is currently navigating a period of subdued demand and price adjustments driven largely by the anticipation of fiscal policy changes. The expected Budget has injected a degree of caution among buyers and sellers alike, especially in higher-value segments potentially targeted by increased taxation. While lower-priced properties show more stability, the overall market is experiencing a cautious early winter slowdown shaped by economic uncertainty and the broader cost of borrowing environment.
📌 Reference Map:
- [1] (introducertoday.co.uk) - Paragraphs 1, 2, 3, 4, 5, 6, 7
- [2] (theguardian.com) - Paragraph 1, 2
- [3], [4], [5], [6], [7] (mpamag.com) - Paragraphs 8, 9
Source: Noah Wire Services