UK house prices down more than usual in November, high-end buyers nervous

Asking prices for UK homes declined more steeply than usual in November, according to data published on Monday by property portal Rightmove.

The national average asking price was down 1.8% on a monthly basis, falling to GBP364,833 in November from GBP371,422 in October, when prices rose 0.3% from September.

"This compares to an average drop over the previous ten years of 1.1% in November, and is the largest fall in prices at this time of year since 2012," Rightmove noted.

On a yearly basis, the average asking price in November declined 0.5%.

Alongside UK government budget anxiety, Rightmove pointed to "the decade-high number of homes available for sale" and resulting downward price pressure, mostly affecting the higher end of the property ladder.

Outside of London, the November average for homes targeted at first-time buyers was GBP225,128, down 0.8% from October and 0.1% below the previous year.

For second-steppers, the average asking price fell more steeply by 1.0% on a monthly basis to GBP340,515, but was 0.1% ahead of the year prior. For those at the top of the property ladder, the average was GBP657,758 in November, a notable decline of 2.7% from October, but still 0.7% ahead of the previous year.

Colleen Babcock, Rightmove's property expert, commented: "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 is a buyers' market."

Babcock also pointed out that approximately one-third of homes already up for sale had their prices cut in November, which represented the highest level of price reductions since February 2024.

Sales agreed for homes costing more than GBP2 million were down 13% on-year, amid rumours of a mansion tax in the upcoming budget. Fears over potential stamp duties have played a role in slowing down agreed sales for homes in the GBP500,000 to GBP2 million price range, which declined 8% in November from a year earlier.

However, most of the housing market is proceeding as usual, as homes priced under GBP500,000, which represent 75% of the market, have seen agreed sales fall at a much slower rate of 4% in November, with Babcock noting that "the majority of home moves would be unaffected by the rumoured changes to property taxes."

In the year-to-date, the total number of agreed sales remains 4% higher than for the comparable period in 2024.

The average fixed two-year mortgage rate currently stands at 4.41%, down from 5.06% a year ago, with Rightmove citing lower interest rates and higher wages for improved affordability, but suggesting that further bank rate cuts and more tax certainty are needed to reassure buyers.

Rightmove's house price index measured 85,179 asking prices for UK homes put on sale by estate agents between October 12 and November 8, and advertised on Rightmove.co.uk.