House prices drop by £6,589 in November ahead of Autumn Budget | Personal Finance | Finance
UK house prices fall by £6,589 in November ahead of Autumn Budget (Image: Getty)
According to property website Rightmove, the average new seller’s asking price fell by 1.8%, or £6,589, month on month in November.
Figures released by Rightmove show this was a larger-than-usual drop in November, bringing the average price tag of a house coming to market across the UK to £364,833. Speculation about the contents of Chancellor Rachel Reeves’ Autumn Budget has caused uncertainty in much of the market, particularly at the top end, the website suggested. He added that homes costing under £500,000 were less affected by rumors of potential policy changes.
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The average price of a house coming on the market across England was £364,833 in November (Image: Getty)
Rightmove said the average monthly price drop in November was 1.1% over the past decade, making this month’s drop the biggest for this time of year since 2012.
The report found that more than a third (34%) of homes listed for sale requested a price reduction, with the average price reduction being 7%. Both figures are 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.”
He added: “The budget is a huge distraction and, later in the year than usual, 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 earlier this year, and sellers willing to move are having to work particularly hard to entice buyers with competitive prices.”
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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 out of the way, house movers can focus on planning with more confidence.”
Nick Leeming, chairman of estate agent Jackson-Stops, said: “It has been a market of two halves so far in November for substantial country houses. Some have opted to wait for post-Budget clarity, whatever news it brings, while others have accelerated transaction times.”
Bertie Russell, managing director at Russell Simpson in London, added: “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 showed that the average monthly cost of a newly rented home in Britain fell by 0.5% to £1,399 in the 12 months to October.
The budget created a lot of uncertainty (Image: Getty)
David Fell, chief analyst for the Hamptons, noted: “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 widened by the pandemic between what tenants are paying now and what they would expect if the property was re-let to a new tenant.”
According to the Hamptons, annual rent growth for tenants renewing their leases across the UK stood at 4.0%, with rents reaching a new record of £1,310 per month.
The Hamptons rental index uses Connells Group data to track rental cost changes and is based on actual rents rather than advertised rents.
The statistics emerged alongside a separate forecast suggesting mortgage loan growth in the UK will 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 the EY Item Club financial services outlook; as depressed affordability and tightening real incomes lead to a decline in housing demand.
The report stated that the struggling global economy and declining real income growth are ready to affect the banking sector in 2026.
Write-off rates on UK mortgages are forecast to fall annually in 2025; EY Item Club forecasts a slight increase in 2026 as some homeowners on fixed-rate mortgages move to arrangements with higher mortgage rates.
Martina Keane, EY UK and Ireland financial services leader, said: “The UK economy is off to a strong start to 2025 but momentum is slowing and we face a challenging market.
“Ongoing global uncertainty and the prospect of further domestic tax rises in the upcoming budget will likely impact the financial services sector next year. However, our sector is resilient and adaptable and our fundamentals remain solid. The decline in 2026 is likely to be temporary and growth levels across most UK financial services sectors will improve over 2027 and 2028 as uncertainty eases.”
