Rightmove: Biggest November drop in UK asking prices in over a decade amid Budget uncertainty

UK asking prices have experienced their biggest November drop in more than 10 years amid Budget jitters and a decade-high number of homes for sale.

Average new seller asking prices fell between October and November by 1.8% from £371,422 to £364,833, according to property website Rightmove.

The average reduction between the two same months over the last 10 years is 1.1%. This year's drop marks the biggest November fall since 2012.

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Rightmove said the high number of properties for sale on the market was putting downward pressure on prices while there were concerns over what could be announced in the Budget on 26 November.

A number of changes could be announced by the chancellor Rachel Reeves later this month with major ramifications for the housing market.

This includes a new tax on the sale of homes worth over £500,000, as well the removal of the capital gains tax exemption on primary residences valued at more than £1.5 million. A new “mansion tax” could also be levied on homes worth more than £2 million.

Both pre-Budget jitters and the excess of homes on sale were compounding the seasonal slowdown in prices usually seen before Christmas, according to Rightmove.

It said over a third of homes available for sale had had an asking price reduction between October and November, with the average price reduction worth 7%. Both these figures are the highest since February 2024.

Colleen Babcock, property expert at Rightmove, said many sellers were “keen to avoid standing out” by over-pricing, while the Budget landing later than usual was prompting would-be buyers to take a wait-and-see approach.

She added: “It appears that the usual lull we’d see around Christmas time has arrived early this year, and sellers who are keen to move are having to work especially hard to entice buyers with competitive pricing.

“This means that average new seller asking prices are now 0.5%, or £1,759, cheaper than a year ago.”

High-end housing market takes biggest hit

House prices across the premium market took the biggest hit, Rightmove said, with the number of sales agreed for homes priced over £2 million down by 13% compared to the same period last year.

Meanwhile, the number of new sellers coming to the market in this price bracket was down by 9%, a larger drop compared to homes at the lower-value end of the market.

Houses priced between £500,000 and £2 million, which could be impacted by rumoured stamp duty reform in England and capital gains tax changes, also suffered between October and November.

Sales agreed on properties within this price range were down by 8% year-on-year, higher than the typical average for this month (5%).

Homes priced under £500,000, which accounts for roughly 75% of the market, were more resilient, Rightmove said.

The number of sales agreed in this sector was down by only 4% year-on-year.

Rightmove said as well as concerns over the contents of the Budget, prospective home-movers had their eyes on interest rates, which, broadly, continue to fall.

The average two-year fixed mortgage rate was 4.91% as of 14 November, according to Moneyfactscompare.co.uk, down from 5.48% the same date a year ago.

However, some home buyers may be waiting until rates come down further.

The Bank of England (BoE) held rates at its last meeting on 6 November, stating it believes inflation has peaked at 3.8%. This could signal a cut is coming at its next meeting on 18 December, which may mean mortgage rates drop.

Babcock added: “If we can see some mortgage rate reductions over the next few weeks, supported by a December Bank Rate cut, we could start 2026 on a positive note with the end of the prolonged Budget hiatus lifting the gloomy atmosphere of recent weeks.”