December 2025 | Rightmove House Price Index
As 2025 ends, the UK property market shows caution and optimism. December saw average new seller asking prices fall 1.8% to £358,138, leaving them 0.6% below 2024. Budget uncertainty slowed activity, especially at the top end, but easing mortgage rates and rising wages point to a post-Christmas rebound and a stronger 2026.
Bigger Boxing Day Bounce Expected, as Prices to Rise 2% in 2026
The property market is ending 2025 with a noticeable pause, as buyers and sellers weigh up their options amid lingering Budget uncertainty. Despite lower mortgage rates and rising wages, caution remains, particularly among higher-value London properties.
Post-Christmas Activity Set to Pick Up
Average new seller asking prices fell 1.8% (-£6,695) this month to £358,138. While December typically sees a seasonal dip, this year’s drop leaves prices 0.6% (-£2,059) lower than at the end of 2024. Many sellers who paused earlier due to Budget speculation are expected to return during the post-Christmas boost, creating a bigger-than-usual Rightmove Boxing Day Bounce.
Early signs suggest a rebound at the top end of the market, with the number of premium London sellers up 24% week-on-week, highlighting growing activity following recent uncertainty.
Budget Uncertainty Dampens H2 2025
Rumours of property tax rises in the November Budget, circulating since August, contributed to subdued activity and pricing in the second half of the year. This caution is reflected in listing and buyer trends: the number of new sellers coming to market was 9% ahead of 2024 in H1 2025 but fell 4% below 2024 in H2, while buyer demand slipped from +3% in H1 to -6% in H2.
Even so, the year overall has been more positive, with sales agreed up 3% compared to 2024, showing demand remains, albeit held back by short-term uncertainty.
Looking Ahead to 2026
Rightmove predicts new seller asking prices will rise by 2% in 2026, supported by improved buyer affordability, plentiful property choice, and a more encouraging market environment reminiscent of the first half of 2025.
Average two-year fixed mortgage rates are now 4.33%, down from 5.08% last year. With house prices cheaper than a year ago, rising wages, and relaxed lending criteria, a post-Christmas activity rebound is expected to kick-start the new year.
What This Means for Sellers
Realistic pricing will be key as buyers remain cautious but active. Those who pause risk missing out on early 2026 activity as market confidence improves.
What This Means for Buyers
With more stock available, easing mortgage rates, and early signs of market recovery, now could be a good time to explore options, particularly before prices start to rise again.
All the information in this update comes from Rightmove’s House Price Index. Click here to read the full report.
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