Advertisement
UK home sellers lowered asking prices more than usual for this time of year, reflecting caution around the property market following the government's budget. Data from Rightmove showed a steeper monthly decline than the long-term average, with prices also slipping on an annual basis. The slowdown was most visible ahead of new policy clarity, although early signs of recovery have emerged in parts of London's prime market. Despite near-term weakness, Rightmove expects market conditions to stabilise and forecasts moderate price growth and stronger buyer activity in 2026.
Asking prices for homes across the UK declined more sharply than is typical for the season, pointing to continued uncertainty in the housing market following the government's budget presented last month. Property portal Rightmove indicated that the timing of the fiscal announcement weighed on sentiment, as buyers and sellers adopted a cautious stance. Advertisement
According to Rightmove's latest report, the average asking price of newly listed homes dropped 1.8% month-on-month in the four weeks leading up to early December. This fall exceeded the 10-year average decline of 1.4% normally seen during this period. On an annual basis, asking prices were 0.6% lower, highlighting the subdued nature of the market.
The budget introduced a new annual tax on homes valued above GBP 2 million, equivalent to around USD 2.63 million, which is scheduled to take effect in April 2028. The proposed levy added to near-term uncertainty, particularly in higher-value segments, as buyers assessed the longer-term cost implications.
Rightmove noted that market activity slowed around the budget period, reinforcing signs already visible through much of the year. Higher borrowing costs and stretched affordability have previously dampened demand, especially outside cash-driven segments. However, the firm reported early indications of a post-budget pickup in sales activity in London's top-end market, suggesting that some buyers are beginning to re-enter.
Looking ahead, Rightmove expects conditions to improve if economic clarity increases. The portal projects that asking prices could rise by around 2% in 2026, supported by a rebound in activity early in the year, assuming a more stable policy and economic environment.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
