The average new seller asking price has seen a larger-than-usual drop in November, according to Rightmove.
This has been fuelled by a decade-high number of homes for sale and the uncertainty brought on by the impending Budget.
The average new seller asking price fell by 1.8%, down £6,589 in November to £364,833, surpassing the average fall of 1.1% in November over the last 10 years.
Rightmove said that asking price reductions of homes already on the market are also at their highest level since February 2024, as sellers aim to tempt more activity from buyers.
The report said that the biggest impact of the upcoming budget was being seen at the upper end of the market, as rumours continue to circulate over chancellor Rachel Reeves’ plans, which may include property tax increases.
This has been demonstrated by sales agreed for £2million+ homes, which would be the subject of a potential mansion tax, falling by 13% year-on-year.
Homes priced between £500,000 and £2million, which would be impacted by potential stamp duty changes in England, or perhaps the rumoured capital gains tax, have seen sales agreed drop by 8% year-on-year
The under £500,000 market has been less impacted, with sales agreed down by only 4% on this time last year. Rightmove said that this likely represents the sector being unsettled by pre-Budget jitters rather than specific policy rumours.
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. The Budget is a big distraction, and is later in the year than usual, with many would-be buyers waiting to see how their finances will be impacted. It appears that the usual lull we’d see around Christmas time has arrived early this year, and sellers who are keen to move are having to work especially hard to entice buyers with competitive pricing. This means that average new seller asking prices are now 0.5%, or £1,759 cheaper than a year ago. In addition, a third of homes already on the market for sale have had their asking price reduced, with an average reduction of 7%, further illustrating that this is a buyers’ market.”
“Rumours of the contents of the forthcoming Budget are affecting the market, as we’re seeing a greater hesitation in sales activity, especially at the upper end, which has been the focus of most of the discussion. While there is also a general unease at how the Budget may impact personal finances, the majority of home moves would be unaffected by the rumoured changes to property taxes. Falling mortgage rates and rising wages have boosted buyer affordability, but the market also needs further Bank Rate cut and less uncertainty about taxes. If we can see some mortgage rate reductions over the next few weeks, supported by a December Bank Rate cut, we could start 2026 on a positive note with the end of the prolonged Budget hiatus lifting the gloomy atmosphere of recent weeks.”
