Hesitant market as Budget speculation fuels uncertainty, especially at upper end
- Average new seller asking prices fall by 1.8% (-£6,589) this month to £364,833. This is a larger-than-usual November drop, as the decade-high number of homes for sale and Budget hiatus add 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
- 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 £2 million+ homes, which are the subject of a potential mansion tax, are down 13% year-on-year
- Homes priced between £500,000 and £2 million, 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
- 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
Larger than average November monthly price drop of -1.8%
Average asking prices are slightly below this time last year at -0.5%
Agreed sales in the year-to-date are up by 4% versus same period in 2024
National average asking price
Nov 2025
£364,833
Oct 2025
£371,422
MoM change
-1.8%
National average asking price by market sector (excluding inner London)
First time buyers
£225,128
MoM change
-0.8%
Second-steppers
£340,515
MoM change
-1.0%
Top of the ladder
£657,758
MoM change
-2.7%
“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 over-pricing compared with their competition. 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. 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.
“Rumours of the contents of the forthcoming Budget are affecting the market, as we’re seeing a greater hesitation in sales activity, especially at the upper end, which has been the focus of most of the discussion. While there is also a general unease at how the Budget may impact personal finances, the majority of home moves would be unaffected by the rumoured changes to property taxes. Falling mortgage rates and rising wages have boosted buyer affordability, but the market also needs further Bank Rate cut and less uncertainty about taxes. If we can see some mortgage rate reductions over the next few weeks, supported by a December Bank Rate cut, we could start 2026 on a positive note with the end of the prolonged Budget hiatus lifting the gloomy atmosphere of recent weeks.”
Colleen Babcock, property expert at Rightmove