The UK housing market is experiencing an unusually sharp slowdown this November, with asking prices falling at their fastest rate for this time of year in over a decade. New data from property portal Rightmove reveals that budget speculation and a high volume of available homes are creating a challenging environment for sellers.
Market Jitters Ahead of Fiscal Statement
According to the latest figures, the average price of a property newly listed for sale in Britain dropped by 1.8% in November. This translates to a cash decrease of £6,589, bringing the average asking price down to £364,833.
Property experts point to the upcoming budget announcement from Chancellor Rachel Reeves on 26 November as a significant factor causing market uncertainty. Potential reforms to property taxes, including stamp duty, have led to many potential buyers “sitting tight” until the government’s plans are clear.
A Deeper Than Usual Seasonal Slump
While a dip in property prices is common in November, with an average monthly drop of 1.1% over the past ten years, the current decline is notably steeper. Rightmove confirms this is the largest November fall since 2012.
The data shows that a significant number of sellers are being forced to adjust their expectations:
- 34% of homes on the market have seen a price reduction.
- The average price cut for these properties is 7%.
- Both of these figures are the highest recorded since February 2024.
Colleen Babcock, a property expert at Rightmove, commented on the situation: “The decade-high number of homes available on the market continues to restrict price growth, with many new sellers keen to avoid standing out by overpricing compared with their competition. The budget is a big distraction... It appears that the usual lull we’d see around Christmas time has arrived early this year.”
Broader Economic Outlook and Mortgage Forecasts
The concerns in the property market are echoed in the wider financial sector. A separate report from the EY Item Club predicts that UK mortgage lending growth will weaken in 2026.
After an expected net growth of 3.2% this year, lending is forecast to slow to 2.8% next year. This is attributed to stretched affordability and a squeeze on real incomes, which are expected to drive a dip in housing demand.
Martina Keane, EY UK and Ireland financial services leader, noted the challenging climate but remained cautiously optimistic about the sector's resilience. The anticipated dip in 2026 is thought to be temporary, with improvements in growth levels expected to return in 2027 and 2028.
