Two in five homes for sale this year have been reduced in price as Budget worries lead to buyer’s market

More than 1million homes have had their asking price cut this year as sellers struggle amid a buyer’s market.

So far this year 1,017,979 of all UK property listings have had at least one price reduction, according to figures from the property database TwentyCi, equating to 38.7 per cent of all homes on the market.

It means price reductions this year are running at their highest levels since 2019.

Even in 2023 when mortgage rates peaked, a smaller 35.1 per cent of listings received at least one price reduction.

The property market is sluggish because of economic gloom, high moving costs including stamp duty and worries about tax changes in the upcoming Budget.  

The south east reported the highest level of price reductions this year, where over 43 per cent of listed properties experienced at least one. 

Higher value homes, of which the region has many, are rumoured to be among the targets of a planned tax raid.  

The latest figures show the true extent of the disconnect between seller expectations and market conditions. 

The time it is taking sellers to lower their asking price is longer than in previous years, according to TwentyCi. 

Over the year to date, the average time it takes from listing a property for sale to its first price reduction is currently 79 days. 

This compares with 73.9 days in 2024, 67.9 days in 2023 and 60.4 days in 2022.

This data chimes with a wave of negative signals coming out of the property market at present.

Earlier this week, Rightmove revealed that average property asking prices fell by £6,589, or 1.8 per cent in November, to £364,833.

Another closely-watched monthly survey that gives a snapshot of what is happening on the ground across the country comes from the Royal Institution of Chartered Surveyors (Rics).

In its latest survey, Rics members reported that new buyer enquiries were down for the third successive month with most parts of the country seeing a decline in new buyer demand. 

Looking ahead, more Rics members said they thought prices would fall over the next three months than those who thought prices will rise. 

Colin Bradshaw, TwentyCi’s chief executive officer said: ‘The number of price reductions has topped 1million in 2025, a clear indication that our homes simply aren’t selling at the price we hope to achieve for them. 

‘Yet the average number of days until the first price reduction is higher than it’s been in seven years. 

‘Vendors are holding on for as long as possible to achieve their desired price, a price that is unrealistic and unaligned with the current market.’

Bargains to be had?

Any buyers that are brave enough to try their luck in the current market will probably be in a strong negotiating position.

TwentyCi’s data found that so far in 2025, the average discount being applied by sellers was a reduction of 5.2 per cent from the original asking price. In value terms, that equates to £25,009 on average.

Homes in Northern Ireland have had the highest level of discount applied, at 6.8 per cent off the asking price while homes in the West Midlands had the lowest, at 4.8 per cent. 

Inner London had an average discount applied of 5.9 per cent, or £61,000 off the original listed price. 

‘Those buyers who need to move have been pressing ahead but negotiating hard to de-risk themselves from any tax changes that may come in next week’s Budget,’ said Jonathan Hopper, chief executive of buying agent Garrington Property Finders.   

‘Many have been rewarded by abundant choice and increasingly desperate sellers who are more likely to agree to big discounts.

‘It could be that the Budget is not the horror show that the market has expected, but the sheer number of rumours about tax increases for anyone buying, selling or living in a home in a high-value area suggests that some pain is coming.

‘Whether the market is left reeling or rejoicing next Wednesday is up to the Chancellor, and her speech could determine where prices go next.’