House prices fall 0.6% in 2025 but post-Budget bounce expected to boost prices in 2026

The average price of property coming to the market for sale has fallen by 1.8% this month to £358,138, the latest Rightmove figures show.

Prices usually fall in December, but this year’s price fall is larger than the ten-year average drop of 1.4%. It means that 2025 ends with average asking prices 0.6% lower than a year ago, with price growth this year strongest in the North West of England (2.6%), flat in London, and lowest in the South West (-2.7%). 

Budget-related gloom and uncertainty have amplified the seasonal slowdown in prices and activity usually seen in December and contributed to a more subdued second half of the year overall. 

Rightmove is now anticipating a bigger-than-usual 'Boxing Day bounce', as many of those who paused their plans due to Budget uncertainty join the traditional start of the busier home-moving season. Its survey of over 10,000 potential movers revealed that nearly one in five were waiting for the outcome of the Budget to resume their moving plans. 

There are already some very early signs of a post-Budget market rebound in some segments and sectors of the market, though the usual festive slowdown has delayed a more widespread bounce-back. In London, the number of new sellers coming to market at the top-end, which was hardest hit by Budget speculation, was up by 24% in the week after the Budget compared with the week before, as some who were waiting for Budget clarity acted.

Rightmove predicts that the 2026 market will be more like the encouraging first half of this year. Buyer affordability is set to improve, and the good choice of homes for sale continues to run at a decade-high level. For these reasons, Rightmove predicts stronger housing market activity, leading to modest upwards price pressure, and causing the average price of property coming to the market for sale to rise by 2% in 2026.

Rightmove’s data highlights the contrast between the first and second halves of 2025, with the unhelpful early Budget rumours unsettling the market and denting activity levels. The number of new sellers coming to market in the first half of 2025 was 9% ahead of the same period in 2024. By contrast, the number of new sellers coming to market in the second half of 2025 was 4% below the same period last year. 

It’s a similar story for buying activity. Buyer demand was 3% higher than 2024 across the first half of this year but turned around to be 6% behind across the second half. It’s still been a strong overall year for sales, with the number of sales agreed 3% higher than in 2024. The final months of this year also compare to a strong period in 2024, which was fuelled by some movers trying to get deals completed before stamp duty rose in England from April. This has exacerbated the weaker year-on-year trends in the second half.

Colleen Babcock, property expert at Rightmove, commented: “Lower price growth supported buyer affordability and drove activity in the first half of the year, even after the April stamp duty deadline in England. In the second half of 2025, uncertainty caused by rumours of property tax changes in November’s Budget swirled, some from as early as August. This had an impact on pricing and activity, as sellers tried to entice nervous buyers. The market will soon benefit from the traditional boost in home-moving activity from Boxing Day. Rightmove’s Boxing Day Bounce is an annual event where we see many begin or resume their plans to move after the distraction of Christmas. With the turkey and trimmings barely off the table, each year we see people heading straight to Rightmove to browse the fresh listings for sale and imagine how different next Christmas could look.

“With market conditions supporting higher levels of activity , and a hopefully more certain economic environment, we forecast a better year for price growth in 2026 with a strong rebound in activity to kick start the year. However, with buyer choice remaining high, sellers will still need to come to the market at tempting prices to attract attention and do all that they can to ensure that their property is presented as well as possible. A more stable 2026 would be good for buyer confidence, which in turn would further boost activity levels, leading to a modest price increase.”