Why are asking prices falling?
The latest data from Rightmove reveals that the property market is likely being impacted by several factors:
- Budget Uncertainty - Speculation about potential changes to property taxes, such as stamp duty and/or capital gains tax, is causing buyers and sellers to pause their plans. This is especially true at the more expensive end of the market, where sales agreed on homes over £2 million are down 13% compared to last year.
- Seasonal Slowdown - November often sees prices dip as the market heads into the quieter Christmas period. However, Rightmove notes this year's slowdown has arrived "earlier and more sharply" than usual.
- Increased Supply - Currently, there is a decade-high level of property choice. Colleen Babcock, property expert at Rightmove said: "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".
What the latest data shows
The November price drop is steeper than the 10-year average for this month, which is typically a fall of around 1.1%. Below, we list the key figures from this month's report:
- Average asking price - Now stands at £364,833
- Monthly change - A drop of £6,591 or -1.8%
- Annual change - Prices are 0.5% lower than in November 2024
- Price reductions - Over a third (34%) of properties currently on the market have had their asking price reduced. This is the highest proportion since February 2024.
What does this mean for buyers and sellers?
The combination of more properties for sale and hesitant buyers has firmly shifted the market in favour of purchasers. We provide a brief summary of how the latest data is likely to impact buyers and sellers:
- Sellers - Pricing realistically from the start of the selling process is crucial. With so much choice, sellers who are keen to move will need to price their property competitively to attract buyers. The high number of price reductions (34%) means sellers may need to adjust their expectations to secure a sale.
- Buyers - The current market offers more negotiating power, less competition, and a wider selection of homes. However, this is balanced against mortgage rates that haven't fallen as sharply as many had hoped.
Despite the gloomy outlook, Rightmove notes that the number of sales agreed upon so far in 2025 is still 4% higher than in the same period in 2024, suggesting that "underlying demand remains solid" for those committed to moving.
What happens next?
Much of the market is holding its breath for the Autumn Budget. Once announced, it is expected that buyers and sellers will be able to plan with more confidence. For the latest predictions and key announcements, check out our article 'Latest Budget 2025 predictions'. The other key factor is affordability. While average mortgage rates are lower than last year, movers are still hoping for a Bank of England base rate cut before the end of the year to further improve affordability.
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