The average asking price for newly listed homes in the UK dropped by over £5,000 in November, according to data from Rightmove.
The typical asking price now stands at £366,592, representing a 1.4% (£5,366) month-on-month decline.
This seasonal decrease surpasses the usual 0.8% dip typically seen at this time of year and marks the second consecutive month of weaker-than-expected price growth.
In October, prices rose by just 0.3%, significantly below the usual 1.3% increase for that month.
Rightmove predicts a brighter outlook for 2025, forecasting a 4% rise in asking prices. However, the property website cautioned that the market remains highly price-sensitive, with competition among sellers at its highest level in a decade.
While further reductions in mortgage rates are anticipated for 2025, the pace of Bank of England base rate cuts is expected to be slower, adding an element of uncertainty to the housing market’s trajectory.
Tim Bannister, Rightmove’s director of property science, highlighted the positive momentum compared to the sluggish market seen last year.
“This sets us up for what we predict will be a stronger 2025 in both prices and the number of homes sold, particularly if mortgage rates fall enough to significantly improve affordability for the mass market,” he said.
Rightmove noted a temporary decline in buyer interest following the autumn Budget but reported a rebound in demand after the Bank of England’s recent base rate cut.
Looking ahead, Bannister added: “We anticipate a stronger year for prices in 2025. Market momentum from this year is likely to carry over, especially if mortgage rates fall to levels that enhance affordability for those waiting to move. However, the market will face challenges, and sellers will need to price competitively to secure buyers amidst a high supply of homes for sale.”
The pace of mortgage rate reductions will be crucial in shaping activity during traditionally busy market periods, Bannister suggested, as affordability remains a key factor for potential buyers.
As 2025 approaches, the UK housing market appears poised for a gradual recovery, but sellers and buyers alike are urged to stay adaptable in response to shifting economic conditions.
