Property industry reacts to new Rightmove House Price Index

Average new seller asking prices fell by 1.8% (£6,695) in December to £358,138, marking a larger-than-usual seasonal drop and leaving prices 0.6% (£2,059) lower at the end of 2025 compared with 2024.

Market activity softened in the second half of the year, with uncertainty linked to speculation around potential property tax rises ahead of November’s Budget weighing on both pricing and demand from as early as late summer.

Despite the slowdown, overall market activity remained slightly stronger, with the number of sales agreed ending the year 3% higher than in 2024.

Industry reaction:

Jeremy Leaf, north London estate agent: “Our experience of the post-Budget period doesn’t chime with Rightmove’s but perhaps that’s because the UK’s largest property portal measures asking or aspirational prices rather than values.

“On the ground, we’ve noticed many buyers and sellers have been sitting on their hands, fearing the worst from the Chancellor, before deciding whether to act.

“The damp squib of a Budget has heartened those in the more price-sensitive £500,000 to £1 million bracket who are breathing a sigh of relief. Those in and around the ‘mansion tax’ levels are generally proving more cautious and not contemplating moves unless circumstances dictate – or at least further details of charging emerge. As a result, we expect a two-tier market to develop in the early New Year with demand gradually increasing for smaller homes particularly if base rate is reduced sooner rather than later.

“We generally find Boxing Day generates a lot of enquiries of which a significant proportion are of relatively poor quality.

“We prefer to judge how the next quarter at least is likely to work out when we’ve had a chance to assess the motivation of the fresh crop of buyers – as well as the sellers. Values will be determined by affordability and the amount of appropriately priced stock in the most sought-after ranges.”

James Nightingall, founder of HomeFinder AI: “Once the festivities wind down, buyers finally have the time and headspace to research the market, refine their budget and start browsing. Post-Christmas is therefore a peak time for property searches online. Sellers also increasingly choose this period to launch new listings, with Boxing Day now a landmark date for properties going live.”

Adam Feather, director, Robert Anthony Estate Agents: “The recent Budget did little to stimulate growth or increase activity in the housing market. Measures that might have encouraged confidence among buyers and sellers were notably absent, leaving the sector facing ongoing uncertainty.

For many in the industry, the Budget was deeply disappointing and continued what is increasingly seen as this Labour government’s poor track record on housing. Instead of providing clarity or support, it reinforced concerns that policy decisions are placing additional pressure on the market at a time when confidence remains fragile.

Without targeted intervention or a clear long-term strategy for housing, the Budget has done little to address the challenges facing the market or to encourage renewed momentum.

Claire Reynolds, UK head of sales at Strutt & Parker: “The weeks of speculation leading up to the Autumn Budget certainly cooled the property market, especially for those making discretionary moves. However, the mood shifted almost instantly once the day finally arrived, with some evidence of a ‘Budget bounce’ in the past couple of weeks. Some sellers who had been waiting on the sidelines have decided to launch before Christmas – hoping to catch those scrolling through Rightmove between Christmas and New Year – while others are preparing to come to market in early January. Clarity has helped people become more decisive, and the Budget hasn’t deterred demand from either buyers or sellers. These signs point to a stronger market heading into 2026.”

Phillip Sandbach, managing director at John German Estate Agents: “The year was progressing quite nicely, then along came the Budget speculation which really put the brakes on, particularly on the listings side. While sales were still being agreed across most of the market, the £1m + market which was the subject of a lot of speculation did dry up.

“Following the Budget, which in the end didn’t significantly impact the majority of the property market, we have seen a marked uptick in activity and a surge in exchanges too. With an anticipated drop in interest rates, we are expecting a very busy start to 2026.”

Jordan Halstead, CEO at Jordan & Halstead Estate Agents: “2025 has felt like two different markets. The first half was busy and focused, but the last quarter slowed down as buyers and sellers paused to see what might come out of the Budget. Deals haven’t dried up, but people have taken longer to commit.

“Properly priced homes are still selling, the ones that have struggled have been the over-optimistic instructions. Buyers will pay fair value; they just won’t chase fantasy prices. Looking ahead, I think 2026 will be steady with small rises. Once the political uncertainty of the Budget has cleared and people feel confident that rates are stable, the market will start moving more freely again.”