Asking prices for homes in the UK dropped sharply in November, with the average price of newly listed properties falling 1.4 per cent to £366,592, according to Rightmove.
The decline, which exceeds the long-term November average of 0.8 per cent, comes as “pre-budget jitters turned into post-budget disappointment” following stamp duty hikes and a lack of support for first-time buyers.
The downturn was most pronounced in the “top-of-the-ladder” segment, with prices for larger homes such as five-bedroom and detached four-bedroom properties falling by 3.3 per cent.
Tim Bannister, Rightmove’s head of property data, attributed the larger-than-usual seasonal slowdown to a mix of political and economic uncertainty. “There’s been a lot for home-movers to process over the past few weeks, and the market seems to still be digesting it,” he said.
Despite the current slump, the Bank of England’s recent interest rate cuts are beginning to stimulate demand. Rightmove has observed an early uptick in buyer activity, which it predicts will lead to stronger market performance in 2025. The property platform forecasts asking prices to rise by 4 per cent next year, the highest expected growth since the post-lockdown boom of 2021.
So far in 2024, asking prices are up 1.2 per cent year-on-year, aligning with Rightmove’s forecast for a modest 1 per cent annual gain as the market naturally slows into December.
Interest rate reductions have also brought more buyers back into the market. Compared to this time last year, there has been a 23 per cent increase in active house hunters and a 26 per cent rise in agreed sales. Meanwhile, the number of sellers is up 6 per cent year-on-year, hitting the highest level in a decade.
While the surge in supply poses challenges for price growth, Bannister remains optimistic that lower mortgage rates will boost affordability and buyer confidence. However, he warned sellers to remain realistic. “The speed at which mortgage rates come down next year will play a key role in determining activity during the traditionally busy spring and summer periods,” he said. “Sellers will need to price competitively to secure buyers in a market with an abundance of choice.”
