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<\/a>Average new seller asking prices fell by 1.8% (\u00a36,695) in December to \u00a3358,138, marking a larger-than-usual seasonal drop and leaving prices 0.6% (\u00a32,059) lower at the end of 2025 compared with 2024.<\/p>\n
Market activity softened in the second half of the year, with uncertainty linked to speculation around potential property tax rises ahead of November\u2019s Budget weighing on both pricing and demand from as early as late summer.<\/p>\n
Despite the slowdown, overall market activity remained slightly stronger, with the number of sales agreed ending the year 3% higher than in 2024.<\/p>\n
Industry reaction:\u00a0<\/strong><\/p>\n Jeremy Leaf, north London estate agent: <\/strong>\u201cOur experience of the post-Budget period doesn\u2019t chime with Rightmove\u2019s but perhaps that\u2019s because the\u00a0UK\u2019s largest property portal measures asking or aspirational prices rather than values.<\/span><\/p>\n \u201cOn the ground, we\u2019ve noticed many buyers and sellers have been sitting on their hands, fearing the worst from the Chancellor, before deciding whether to act.<\/span><\/p>\n \u201cThe damp squib of a Budget has heartened those in the more price-sensitive \u00a3500,000 to \u00a31 million bracket who are breathing a sigh of relief. Those in and around the \u2018mansion tax\u2019 levels are generally proving more cautious and not contemplating moves unless circumstances dictate <\/span>\u2013 or at least further details of charging emerge. As a result,\u00a0we expect a two-tier market to develop in the early New Year with demand gradually increasing for smaller homes particularly if base rate is reduced sooner rather than later.<\/span><\/p>\n \u201cWe generally find Boxing Day generates a lot of enquiries of which a significant proportion are of relatively poor quality.\u00a0<\/span><\/p>\n \u201cWe prefer to judge how the next quarter at least is likely to work out when we\u2019ve had a chance to assess the motivation of the fresh crop of buyers \u2013 as well as the sellers. Values will be determined by affordability and the amount of appropriately priced stock in the most sought-after ranges.\u201d<\/span><\/p>\n \u00a0<\/p>\n James <\/span>Nightingall<\/span>, founder of <\/span>HomeFinder<\/span><\/strong> AI:<\/strong> \u201cOnce the festivities wind down, buyers finally have the time and headspace to research the market, refine their budget and start browsing. Post-Christmas is therefore a peak time for property searches online. Sellers also increasingly choose this period to launch new listings, with Boxing Day now a landmark date for properties going live.\u201d<\/span><\/p>\n \u00a0<\/p>\n Adam Feather, director, Robert Anthony Estate Agents: <\/span><\/strong>\u201cThe recent Budget did little to stimulate growth or increase activity in the housing market. Measures that might have encouraged confidence among buyers and sellers were notably absent, leaving the sector facing ongoing uncertainty.<\/p>\n For many in the industry, the Budget was deeply disappointing and continued what is increasingly seen as this Labour government\u2019s poor track record on housing. Instead of providing clarity or support, it reinforced concerns that policy decisions are placing additional pressure on the market at a time when confidence remains fragile.<\/p>\n Without targeted intervention or a clear long-term strategy for housing, the Budget has done little to address the challenges facing the market or to encourage renewed momentum.<\/p>\n \u00a0<\/p>\n Claire Reynolds, UK head of sales at Strutt & Parker:<\/strong> \u201cThe weeks of speculation leading up to the Autumn Budget certainly cooled the property market, especially for those making discretionary moves. However, the mood shifted almost instantly once the day finally arrived, with some evidence of a \u2018Budget bounce\u2019 in the past couple of weeks. Some sellers who had been waiting on the <\/span>sidelines<\/span> have decided to launch before Christmas \u2013 hoping to catch those scrolling through Rightmove between Christmas and New Year \u2013 while others are preparing to come to market in early January. Clarity has helped people become more decisive, and the Budget hasn\u2019t deterred demand from either buyers or sellers. These signs point to a stronger market heading into 2026.\u201d<\/span><\/p>\n \u00a0<\/p>\n Phillip Sandbach, managing director at John German Estate Agents:<\/strong> \u201cThe year was progressing quite nicely, then along came the Budget speculation which really put the brakes on, particularly on the listings side. While sales were still being agreed across most of the market, the <\/span>\u00a31m + market which was the subject of a lot of speculation did dry up.<\/span><\/p>\n \u201cFollowing the Budget, which in the end didn\u2019t significantly impact the majority of the property market, we have seen a marked uptick in activity and a surge in exchanges too. With an anticipated drop in interest rates, we are expecting a very busy start to 2026.\u201d<\/span><\/p>\n \u00a0<\/p>\n Jordan Halstead, CEO at Jordan & Halstead Estate Agents:<\/strong> \u201c2025 has felt like two different markets. The first half was busy and focused, but the last quarter slowed down as buyers and sellers paused to see what might come out of the Budget. Deals haven\u2019t dried up, but people have taken longer to commit.<\/span><\/p>\n \u201cProperly priced homes are still selling, the ones that have struggled have been the over-optimistic instructions. Buyers will pay fair value; they just won\u2019t chase fantasy prices. Looking ahead, I think 2026 will be steady with small rises. Once the political uncertainty of the Budget has cleared and people feel confident that rates are stable, the market will start moving more freely again.\u201d<\/span><\/p>\n \u00a0<\/p>\n UK asking prices slide again as market uncertainty persists<\/a><\/p>\n<\/blockquote>\n\n