Property Market Sees Sharp November Price Correction
Britain's property market has experienced its most significant November price decline in over a decade, with new seller asking prices dropping by 1.8% this month according to the latest data from property portal Rightmove. This substantial fall, equivalent to £6,589 off the average property, marks the largest November decrease since 2012 and has brought the typical asking price down to £364,833.
Budget Uncertainty and Widespread Price Reductions
Market analysts point to speculation surrounding the forthcoming Budget as a key factor creating uncertainty, particularly affecting properties at the upper end of the market. Homes priced below £500,000 have demonstrated greater resilience to potential policy changes. This month's decline substantially exceeds the decade's average November fall of 1.1%.
The report reveals that more than a third of available properties, specifically 34%, have undergone asking price reductions. The average size of these reductions stands at 7%, with both figures representing the highest levels recorded since February 2024.
Colleen Babcock, a property expert at Rightmove, commented: "The decade-high number of homes available on the market continues to restrict price growth, with many new sellers keen to avoid standing out by over-pricing compared with their competition."
"The Budget is a big distraction, and is later in the year than usual, with many would-be buyers waiting to see how their finances will be impacted," she added. "It appears that the usual lull we'd see around Christmas time has arrived early this year."
Mortgage and Rental Market Developments
Meanwhile, the rental market presents a contrasting picture. A separate report from property firm Hamptons found that over the twelve months to October, the average monthly cost of a newly-let home in Britain actually decreased by 0.5% to £1,399.
However, landlords securing contract renewals achieved above-inflation increases, with annual rental growth for tenants renewing their contracts reaching 4.0%. This pushed renewal rents to a new peak of £1,310 per month.
David Fell, lead analyst at Hamptons, explained: "Despite rents falling annually for the third straight month, landlords are still managing to agree above inflation increases when it comes to contract renewals."
Looking ahead, mortgage experts anticipate continuing developments. Matt Smith, a mortgage expert at Rightmove, noted: "Home movers can expect some small drops in average mortgage rates to continue over the next few weeks."
The financial services outlook appears cautiously optimistic for the medium term. Following expected net growth of 3.2% this year, UK mortgage lending is forecast to slow slightly in 2026 to 2.8% growth, before potentially recovering in 2027 and 2028 if interest rates fall and confidence improves.
