The UK property market saw a larger-than-usual drop in asking prices in November, with the average price falling by 1.4% to £366,592, according to property website Rightmove. This drop was attributed to pre- and post-Budget concerns, which led to a slowdown in market activity for the second consecutive month. However, despite the decrease in asking prices, market activity remains strong compared to the same time last year, with the number of sales being agreed 26% higher.
The number of new sellers putting their homes up for sale is also up by 6% compared to last year, indicating a positive outlook for the market. Rightmove predicts a 4% rise in average new seller asking prices for 2025, but acknowledges that the market remains sensitive to pricing due to the high number of sellers currently looking for buyers.
Rightmove director Tim Bannister noted that recent news, including an increase in stamp duty charges and a second Bank Rate cut, had initially led to a drop-off in buyer demand. However, a boost of optimism regarding 2025 and lower mortgage rates have reversed this trend temporarily.
Looking ahead, Rightmove anticipates a stronger 2025 in both prices and the number of homes sold, particularly if mortgage rates continue to fall and improve affordability for more buyers. The overall picture of market activity remains positive when compared to the same time last year, suggesting a promising year ahead for the UK property market.
Source
Photo credit www.euronews.com
