Homeowners across the UK have been dealt a significant financial blow, with new data revealing a sharp drop in property asking prices as uncertainty surrounds the upcoming Autumn Budget under the Labour government.
Steepest November Drop in Over a Decade
According to the latest figures from the property portal Rightmove, the average new seller asking price fell by 1.8% in November. This translates to a substantial cash decrease of £6,589 month-on-month, marking the most significant drop for this time of year since 2012.
This decline has pulled the average price tag on a British home down to £364,833. Property expert at Rightmove, Colleen Babcock, attributed the fall to a combination of a high volume of available homes and the distracting effect of the forthcoming budget.
Budget Speculation Creates Market Paralysis
"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," Babcock stated. She noted that the usual Christmas slowdown appears to have arrived early, forcing sellers to price their properties competitively to attract hesitant buyers.
This sentiment is echoed in the wider financial community. Martina Keane, the EY UK and Ireland financial services leader, commented, "The UK economy made a strong start to 2025, but momentum is slowing and we are facing a challenging market." She pointed to "ongoing global uncertainty and the prospect of further domestic tax rises in the upcoming budget" as key factors likely to impact the sector next year.
Buyers 'Sitting Tight' Amid Stamp Duty Fears
The apprehension is palpable among potential movers. The article highlights concerns from Channel 4 presenter Kirstie Allsopp, who reports that "people are in a panic" about potential changes to stamp duty and are choosing to "sit tight" until after the budget is announced.
Despite the current dip, EY's analysis suggests the anticipated slowdown in 2026 is "likely to be temporary," forecasting an improvement in growth levels across most UK financial services in 2027 and 2028. For now, however, the UK housing market is in a holding pattern, with sellers bearing the immediate cost of the pre-budget jitters.
