Asking prices fall as UK housing market hit by budget speculation, Rightmove says | Housing market

Figures from a leading property website suggest budget speculation is taking a toll on the UK property market, with asking prices falling as Rachel Reeves approaches her much-anticipated financial reshuffle on November 26.

In November the average new seller asking price fell by 1.8% or £6,589 month on month; Figures compiled by property website Rightmove put the average price tag of a British house listed for sale at £364,833.

The data comes as the Chancellor comes under pressure to reform property taxes, with housing market experts including TV presenter Kirstie Allsopp saying “people are panicking” about potential stamp duty changes and are “holding tight” to the budget.

Rightmove says it is quite common for prices to fall every month in November, with the average monthly price drop over the last decade being 1.1%.

However, the current decline is the largest at this time of the year since 2012; 34% of homes on the market reduce their prices, followed by an average price reduction of 7%. Both figures are the highest since February 2024, the website says.

The pessimism in the market is thought to be partly driven by speculation about the contents of the budget, particularly for more expensive properties.

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.

“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. It seems the usual lull we’ll see over the Christmas period came earlier this year, and sellers keen to move are having to work particularly hard to entice buyers with competitive pricing.”

Houses priced below £500,000 were less affected by rumors of potential policy changes, the survey found.

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% next year, according to EY Item Club’s financial services outlook; because the increase in affordability and the contraction in real incomes cause a decrease in housing demand.

The study stated that a difficult global economy and declining real income growth will affect the banking sector in 2026.

Martina Keane, EY UK and Ireland financial services leader, said: “The UK economy has made a strong start to 2025, but momentum is slowing and we face a challenging market. Continued global uncertainty and the prospect of further domestic tax rises in the upcoming budget will likely impact the financial services sector next year. But our industry is resilient and adaptable and our fundamentals remain strong.”

He said the expected decline in 2026 was “likely temporary” and would be followed by an improvement in growth levels across most financial services in the UK in 2027 and 2028.