UK Property Market Sees Sharp November Price Drop
The average asking price for a home in Britain fell by 1.8% in November, a drop of £6,589, marking the most significant decline for this month since 2012. According to the property portal Rightmove, this has brought the typical price tag for a new seller to £364,833.
Budget Speculation Creates Market Uncertainty
Rightmove reported that speculation surrounding the upcoming Budget is fuelling uncertainty, particularly in the higher end of the market. Homes priced below £500,000 have been less affected by the rumours of potential policy changes. Over the past ten years, the average November price drop has been 1.1%, making this month's fall notably steeper.
Adding to the market's challenges, more than a third (34%) of homes currently for sale have seen their asking price reduced. The average size of these reductions is 7%, with both figures reaching their highest point since February 2024.
Experts Point to High Supply and Buyer Caution
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,” she said, noting that many new sellers are keen to avoid over-pricing their properties. “The Budget is a big distraction... It appears that the usual lull we’d see around Christmas time has arrived early this year.”
Mortgage expert Matt Smith offered a glimmer of hope, suggesting that home movers could see small drops in average mortgage rates in the coming weeks. He added that once the Budget announcements are made, potential buyers can plan with greater confidence.
The sentiment is echoed by industry leaders. Nick Leeming, chairman of estate agent Jackson-Stops, observed a “market of two halves” for prime country houses in November, with some buyers waiting for post-Budget clarity and others accelerating their purchases.
In the London market, Bertie Russell of Russell Simpson noted an increase in activity from investors, pied-à-terre buyers, and a larger number of US buyers.
Rental and Lending Markets Also Show Shifts
Separate data from Hamptons revealed a slight cooling in the rental sector. Over the 12 months to October, the average monthly cost of a newly-let home in Britain fell by 0.5% to £1,399. However, for tenants renewing their contracts, rents actually increased by 4.0%, reaching a new peak of £1,310 per month.
Looking ahead, a forecast from the EY Item Club predicts a slowdown in UK mortgage lending growth for 2026. After an expected net growth of 3.2% this year, lending is forecast to slow to 2.8% growth next year due to stretched affordability and a squeeze on real incomes.
Martina Keane of EY UK stated, “The UK economy made a strong start to 2025, but momentum is slowing... A dip in 2026 is likely to be temporary, and as uncertainty recedes, growth levels... will improve over 2027 and 2028.”
