Rachel Reeves budget blamed for dip in housing market as asking prices drop

Average new seller asking price fell by 1.8% or £6,589 month-on-month in November and the average price tag on a home comes to market across Britain to £364,833

Fears over the Budget has been blamed for a dip in house prices. The average new seller asking price fell by 1.8% or £6,589 month-on-month in November, according to a property website.

It takes the average price tag on a home coming to market across Britain to £364,833. Rightmove, which released the figures, said this was a bigger-than-usual drop for this month.

They said speculation about the contents of the Budget is fuelling uncertainty across much of the market, particularly at the upper end.

Meanwhile, surveyors have also reported a notable cooling across the UK’s housing market. They said buyer demand, sales activity and new instructions all fell further into negative territory last month.

The Royal Institution of Chartered Surveyors (Rics) report said property professionals strongly attribute the slowdown to mounting uncertainty ahead of the autumn Budget and potential tax-raising measures.

A net balance of 24% of professionals noted a fall in new buyer inquiries, marking the weakest reading since April.

A balance of 24% also saw a fall in agreed sales and 20% of professionals saw new instructions to sell fall rather than rise – the weakest reading since 2021.

Looking at house prices, a net balance of 19% of professionals saw prices falling rather than rising.

Rics head of market research and analysis Tarrant Parsons said: “The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence.

“Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.

“The coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction.

“Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.”