Property asking prices have dropped by 1.8% in November 2025, the largest fall for this time of year since 2012, as uncertainty around the Autumn Budget prompts buyers and sellers to pause.
The average asking price for a home coming to market fell by £6,591 to £364,833 in November, according to the latest Rightmove data. This significant monthly drop comes as speculation about potential property tax changes in the upcoming Autumn Budget (26th November) creates hesitancy across the market.
Why Are Prices Falling?
Several factors are combining to create this sharp November decline:
- Budget Uncertainty: With rumours swirling about potential changes to stamp duty, capital gains tax on primary residences, and new wealth taxes on higher-value properties, many would-be buyers are adopting a “wait and see” approach. Sales agreed for homes priced £2 million+ are down 13% year-on-year, whilst properties between £500,000-£2 million have seen an 8% drop.
- High Property Choice: The UK is experiencing a decade-high level of homes available on the market. Over a third (34%) of properties currently listed have had an asking price reduction, with the average cut being 7%, the highest figures since February 2024.
- Seasonal Slowdown Arriving Early: Whilst November typically brings a market lull ahead of Christmas, this year the slowdown has arrived earlier and more sharply than usual. Many sellers keen to move are having to work harder to entice buyers with competitive pricing.
Regional Variations
The slowdown isn’t uniform across the country. Southern England, particularly London, is seeing the most pronounced hesitancy, with price growth largely stalled due to affordability pressures. Meanwhile, Scotland, Wales, and northern English regions continue to show steadier growth at just over 2% annually, similar to last year’s pace.
What This Means for Buyers and Sellers
- For Buyers: This is very much a buyers’ market right now. With more negotiating power, less competition, and a wider selection of homes, buyers can afford to be selective. Mortgage rates have also improved, with the average two-year fixed rate currently at 4.41% compared to 5.06% this time last year.
- For Sellers: Pricing realistically from the start is crucial. With so much competition, sellers who are serious about moving need to price competitively and be prepared to adjust expectations. The high number of price reductions shows that overpricing simply leads to properties languishing on the market.
Looking Ahead
Despite the gloomy headlines, underlying demand remains solid, sales agreed so far in 2025 are still 4% higher than the same period in 2024. Much of the market is holding its breath for the Autumn Budget announcement. Once uncertainty lifts, buyers and sellers should be able to plan with more confidence as we head into 2026.
For those looking to buy or sell, getting a professional survey and accurate valuation remains essential, regardless of market conditions. Understanding a property’s true condition and value helps you make informed decisions in any market.
