New data shows a 1.4% drop in average asking prices.
- The decline surpasses the usual seasonal decrease of 0.8%.
- Market activity is still stronger than last year, despite recent changes.
- Buyer demand has fluctuated post-Budget but is recovering after a rate cut.
- Rightmove predicts a 4% rise in prices for next year as optimism grows.
A recent analysis indicates that the average asking prices for new sellers have dipped by 1.4%, settling at £366,592. This decline is notably larger than the typical seasonal drop of 0.8% observed at this time of year, attributed to uncertainties related to the Budget. However, despite this setback, broader market activity remains robust compared to the previous year.
Following the Budget, the market observed a second cut to the Bank Rate. Early indicators from Rightmove’s real-time data suggest an uptick in buyer activity as a result. This is accompanied by sustained positive market metrics, further bolstered by optimistic forecasts for reduced mortgage rates in 2025.
Rightmove has projected a 4% increase in average new seller asking prices for 2025, underlining a sense of optimism despite the current economic pressures. Nevertheless, the market is expected to retain its sensitivity to price adjustments, with sellers competing with an exceptionally high number of alternatives to attract buyers.
The competitive landscape for sellers is set against a backdrop of a high supply of homes per estate agent branch, a level not seen since 2014. Sellers are advised to adopt realistic pricing to appeal to buyers who face affordability challenges, especially with anticipated slow wage growth following National Insurance increases.
Since the Budget, there has been volatility in the market, with buyer demand dropping from 23% to 18%, but it has rebounded back to 23% after the latest Bank Rate cut. These figures underscore the market’s dynamic nature as it adjusts to fiscal policy changes, yet it still anticipates the usual seasonal lull as Christmas approaches.
Rightmove’s outlook for 2025 remains positive, expecting continued market growth if mortgage rates decline substantially.
