According to the latest Rightmove House Price Index, the fall in December asking prices means that average asking prices at the end of the year are 0.6% down on last year. It also compares to the 10-year average of a 1.4% drop in December.
Looking at the top-of-the-ladder end of the market, average asking prices fell by 2.4% month-on-month to £642,758. This is 0.2% down on the same period last year.
For second-steppers, the monthly change in asking prices came to negative 1.8% and annual changes stood at negative 0.5%, with asking prices coming to £334,297.
First-time buyer asking prices came to £221,950, a monthly and annual fall of 1.4%.
However, the report said a “bigger-than-usual” Boxing Day bounce is expected, as those who paused their buying and selling plans before the Budget are expected to “join the post-Christmas boost in home moving activity”.
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A recent poll by this publication revealed that two-thirds of brokers said buyers were delaying purchase plans due to the Autumn Budget.
Rightmove noted that the number of top-end London sellers was up 24% week-on-week, showing “very early signs of a post-Budget rebound”.
It added that a survey of 10,000 potential movers showed that nearly one in five were waiting for the outcome of the Budget to proceed with their moving plans.
Rightmove said it expected the 2026 market to be more buoyant, similar to the first half of this year, where new sellers rose 9% year-on-year and buyer demand was 4% ahead compared to 2024.
The firm said buyer affordability is “set to improve” and the “good choice of homes for sale” has stayed at a 10-year high.
It noted that due to the “stronger housing market activity”, there would be “modest upwards price pressure”, so average property prices will rise by 2% in 2026.
Rightmove predicted that average new seller asking prices will rise by 2% in 2026.
Matt Smith, Rightmove’s mortgage expert, said: We’re expecting to end the year with a bank rate cut, which would be good for confidence heading into the Rightmove Boxing Day bounce. It’s unlikely that it will cause much movement in mortgage rates – the markets are very much expecting December’s cut to go ahead, and lenders have shown their hand early, cutting rates and competing to secure end-of-year business.
“The headline is that homemovers will be entering 2026 looking at cheaper average mortgage rates than they were at the beginning of 2025, helping affordability. Those who are seeing slightly lower house prices in their area compared to last year and may have also had an end-of-year pay rise will see their affordability improved further.
“Many homemovers will also see that the amount that they can borrow has increased, as lender[s] have been rolling out the loan-to-income and stress rate changes that were permitted by the regulator earlier this year.”
