Budget speculation has depressed the UK property market, figures from a leading property website have suggested, with asking prices slipping in the run-up to Rachel Reeves’s much anticipated fiscal set piece on 26 November.
The average new seller asking price fell by 1.8%, or £6,589, month on month in November, the figures collated by the property website Rightmove set out, taking the average price tag on a British home put up for sale to £364,833.
The data has emerged as the chancellor has come under pressure to reform property taxes, with housing market experts including the TV presenter Kirstie Allsopp saying “people are in a panic” about potential stamp duty changes, and “sitting tight” before the budget.
It is fairly common for prices to fall month on month in November, when the average monthly price drop has been 1.1% over the past decade, Rightmove says.
However, the current fall is the biggest for this time of year since 2012, with 34% of homes on the market reducing their asking prices and then implementing an average price cut of 7%. Both numbers are the highest since February 2024, the website says.
The gloom in the market is thought to have been partly fuelled by speculation about the contents of the budget, particularly for more expensive properties.
Colleen Babcock, a property expert at Rightmove, said: “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 overpricing 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. 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.”
Homes priced at under £500,000 had been less affected by potential policy change rumours, the survey said.
The figures were released as a separate report predicted that UK mortgage lending growth will weaken in 2026.
After expected net growth of 3.2% this year, UK mortgage lending is forecast to slow to 2.8% next year, as stretched affordability and a squeeze on real incomes drive a dip in housing demand, according to the EY Item Club outlook for financial services.
A challenged global economy and reduced real income growth were set to affect the banking sector in 2026, the study said.
Martina Keane, the EY UK and Ireland financial services leader, said: “The UK economy made a strong start to 2025, but momentum is slowing and we are facing a challenging market. Ongoing global uncertainty and the prospect of further domestic tax rises in the upcoming budget are likely to impact the financial services sector next year. However, our industry is resilient and adaptable, and our fundamentals remain solid.”
It said the anticipated dip in 2026 was “likely to be temporary” and followed by improvement in growth levels across most UK financial services in 2027 and 2028.