Despite the fall in asking prices, property website Rightmove says market activity is still strong compared with the same time last year with the number of sales being agreed 26% higher than in that period in 2023.
ADVERTISEMENTThe average asking price of a UK property in November fell 1.4% to £366,592, according to property website Rightmove.
That represented a larger-than-usual drop of £5,366, which is usually around the 0.8% mark.
The property firm put the drop down to pre- and post-Budget concerns. The jitters about what was to come in the 30 October Budget – and which kept the market cautious -turned to disappointment following the Budget revelations. That brought about a slowdown for the second consecutive month, Rightmove said.
Even so, market activity is still strong compared with the same time last year with the number of sales being agreed 26% higher than the same time last year.
The number of new sellers planning to move and putting their homes up for sale is also up, at 6% more than the same time last year.
Rightmove said the chance of the Bank of England slowing its interest rate cuts might mean some would-be movers will be delaying plans and there was usually a slowdown of activity ahead of Christmas.
Market still sensitive to prices
It is predicting that 2025 will see a 4% rise in average new seller asking prices although the market is expected to remain sensitive to pricing, with sellers currently competing with a decade-high number of other sellers who are all looking for a buyer.
“There’s been a lot of news to digest for home-movers over the last few weeks and it appears that the market may still be chewing it over,” said Rightmove director Tim Bannister.
“We had been seeing a drop-off in buyer demand, both in the lead-up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp-duty charges for most home-movers and second-home buyers, and some first-time buyers.
“However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily. Zooming out of these short-term trends, the big picture of market activity remains positive when compared to the quieter market at this time last year.
“This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improve affordability for more of the mass-market.”