Average house price revealed as market sees largest November drop since 2012
New seller asking house prices across England fell 1.8 per cent, or £6,589, in November, according to property portal Rightmove. This marks the biggest November drop since 2012 and brings the average price tag to £364,833.
Speculation about the upcoming Budget adds to market uncertainty, especially at the top end. But homes priced below £500,000 showed more resistance to potential policy changes. This month’s decline significantly outpaced the decade’s average November decline of 1.1 percent.
More than a third (34%) of homes available for sale requested a price reduction; The average price reduction was 7%. The report stated that both figures were the highest since February 2024.
Rightmove property expert Colleen Babcock said: “The number of homes available on the market over the last decade continues to limit price growth, with many new sellers trying to avoid standing out by overcharging compared to their competitors.
“The budget is a huge distraction and, further into the year than ever before, many potential buyers are waiting to see how their finances will be affected.
“The usual recession we see around Christmas time appears to have arrived at the beginning of this year, and sellers willing to move are having to work particularly hard to entice buyers with competitive prices.”
Matt Smith, mortgage expert at Rightmove, said: “House movers can expect some small declines in average mortgage rates to continue over the next few weeks. The budget has created a lot of uncertainty and has a huge backlog, so once the announcements are over house movers can focus on planning with more confidence.”
Nick Leeming, chairman of estate agents Jackson-Stops, said: “It has been a market of two halves for substantial country houses so far in November. Some have opted to wait for clarity after the Budget, whatever news it brings, while others have accelerated transaction times.”
Bertie Russell, managing director of Russell Simpson in London, said: “We’re starting to see more investors and onshore buyers looking, as well as a larger group of US buyers.”
Meanwhile, a report from property firm Hamptons found that the average monthly cost of a new rented house in Britain fell by 0.5% to £1,399 in the 12 months to October.
David Fell, chief analyst for the Hamptons, said: “Despite rents falling for the third straight month on an annual basis, landlords are still managing to negotiate above inflation increases on lease renewals.
“Generally these reduce the gap opened up by the pandemic between what tenants are paying now and what they would expect if the property were re-let to a new tenant.”
The Hamptons said annual rent growth for tenants renewing their leases in England was 4.0%, with rents reaching a new high of £1,310 a month.
The Hamptons rental index uses data from Connells Group to track changes in rental costs and is based on achieved rents rather than advertised rents.
The figures were released as a separate report predicted mortgage growth in the UK would weaken in 2026.
Following net growth of 3.2% expected this year, UK mortgage lending is expected to slow to 2.8% net growth in 2026, according to EY Item Club’s financial services outlook; because the contraction in affordability and the contraction in real incomes cause a decrease in housing demand.
According to the report, a challenging global economy and declining real income growth are expected to impact the banking sector in 2026.
Write-off rates on UK mortgages are expected to fall annually in 2025; EY ITEM Club forecasts a marginal increase in 2026 as some homeowners on fixed-rate mortgages refinance into deals with higher mortgage rates.
Total UK bank lending, comprising mortgages, commercial borrowing and consumer loans, is expected to slow from 3.8% net growth this year to 3.3% in 2026.
If interest rates fall and consumer and corporate confidence increases as expected, lending is expected to rebound with a net increase of 3.7 percent and 3.9 percent in 2027 and 2028, respectively.
