House prices have fallen by 0.6% in 2025 after a larger-than-usual drop in December, according to Rightmove.
The average house price now stands at £358,138, down 1.8% month-on-month, a fall of £6,695. House prices typically fall in December, but this month’s dip surpasses the ten-year average of 1.4%.
On an annual basis, the country saw mixed levels of growth, with the North West of England performing best with a growth of 2.6%. London house price growth stalled, while the South West and South East both decreased by 2.7% year-on-year.
However, Rightmove is predicting a stronger Boxing Day bounce, as it expects potential buyers deterred by Budget uncertainty to join the post-Christmas boost in home-moving activity. The property platform’s survey of over 10,000 potential movers revealed that nearly one in five were waiting for the outcome of the Budget to resume their moving plans. This large percentage underlines the impact of the Budget hiatus, and it’s likely that many of this group will be re-engaged by the number of new listings that are being held back ready for launch on or soon after Boxing Day.
Rightmove also reported some early signs of post-Budget rebound across some segments of the market in December, with the number of top-end London sellers up by 24% in the week after the Budget compared with the week before, as some who were waiting for Budget clarity acted.
Looking ahead, Rightmove predicts that the 2026 market will be more like the encouraging first half of this year, rather than the second half, where confidence was affected by Budget speculation. It suggests that buyer affordability is set to improve, and the good choice of homes for sale continues to run at a decade-high level, resulting in stronger housing market activity and leading to modest upwards price pressure. As a result, it predicts average house prices to rise by 2% in 2026.
Colleen Babcock, property expert at Rightmove, said: “Lower price growth supported buyer affordability and drove activity in the first half of the year, even after the April stamp duty deadline in England. In the second half of 2025, uncertainty caused by rumours of property tax changes in November’s Budget swirled, some from as early as August. This had an impact on pricing and activity, as sellers tried to entice nervous buyers. The market will soon benefit from the traditional boost in home-moving activity from Boxing Day.”
“With market conditions supporting higher levels of activity, and a hopefully more certain economic environment, we forecast a better year for price growth in 2026 with a strong rebound in activity to kick start the year. However, with buyer choice remaining high, sellers will still need to come to the market at tempting prices to attract attention and do all that they can to ensure that their property is presented as well as possible. A more stable 2026 would be good for buyer confidence, which in turn would further boost activity levels, leading to a modest price increase.”
