The average price of a home fell by more than £5,000 in November, according to a property website.
Across Britain, the typical asking price for a home coming onto the market is £366,592, down by 1.4 per cent or £5,366 month-on-month.
The usual drop seen at this time of year is 0.8 per cent and November is the second month in a row that price growth has been weaker than usual, said Rightmove.
In October prices increased by 0.3 per cent, which was lower than the typical 1.3 per cent rise for that month.
Rightmove expects asking prices to increase by four per cent across 2025, but it cautioned that the market remains price sensitive, and seller competition is at its highest level for a decade.
While more mortgage rate cuts are still expected during 2025, Bank of England base rate cuts are now forecast to be slower paced, Rightmove said.
Tim Bannister Rightmove’s director of property science said: “The big picture of market activity remains positive when compared to the quieter market at this time last year.
“This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improve affordability for more of the mass market.”
Rightmove said its data indicates that a drop in buyers contacting estate agents about homes for sale after the autumn Budget was followed by a rise in buyer demand in response to the recent Bank of England base rate cut.
We now predict that we’ll see a stronger year for prices in 2025
But the website still expects to see the usual seasonal slow-down in home-moving activity in the run-up to Christmas.
Mr Bannister added: “We now predict that we’ll see a stronger year for prices in 2025. The signs are that the market momentum that we’ve been seeing this year will continue into next year, especially if mortgage rates drop to a level that gives greater affordability to some movers who have been waiting in the wings until now.
“However, we still expect some twists and turns next year. The speed at which mortgage rates come down next year will be key in determining activity levels for some of the market’s traditionally busiest periods, and sellers will still need to price temptingly enough to secure a buyer while the choice of homes for sale remains as high as it is right now.”
As we go into 2025 we expect market sentiment to improve further
The report also quoted the views of estate agents.
Kevin Shaw, national sales managing director at Leaders Romans Group said: “It’s definitely an interesting time in the market but as we go into 2025 we expect market sentiment to improve further.”
Alastair Cochrane, group sales and operations director at Stirling Ackroyd said: “Overall yields have increased with rising rents, which should give investors some comfort despite increases in stamp duty.”
Alex Caddy, manager at Clarkes Estate and Letting Agency said: “We have two camps of sellers at the moment – those without time pressure are holding fast with their asking prices, while others who reduce their price to attract a buyer more swiftly have more luck once they find a competitive price point.
“There are still many sellers planning their moves who are out looking despite not yet having a buyer themselves.
“There is certainly optimism that as first-time buyer activity picks up, this will create the much-needed knock-on effect to kick-start next year.”
