November 2025 | Rightmove House Price Index
The November market is showing signs of hesitation, with both buyers and sellers pausing as Budget speculation grows. Despite easing mortgage rates and improving wages, uncertainty around potential tax changes is creating a cautious mood, particularly at the upper end of the market.
As we move through November, the property market is starting to tread a little more carefully. Rightmove’s latest House Price Index suggests that both sellers and buyers are taking a moment to pause, with speculation around the upcoming Budget creating a noticeable sense of caution — particularly at the higher end of the market.
Mortgage rates have continued to edge down and wages are gradually rising, which should, in theory, boost confidence. But the political backdrop is casting a shadow. With talk of potential property tax changes picking up pace, many would-be movers are waiting to see what the Chancellor has in store.
Asking Prices Slip as Seasonality Meets Speculation
Average new-seller asking prices have dropped by 1.8% this month (-£6,589), bringing them down to £364,833. A fall in November isn’t unusual, but this year’s drop is steeper than normal.
Part of this is down to the sheer volume of homes now for sale, the highest level in a decade. With more competition, sellers are having to price sensibly, and the uncertainty around the Budget is adding an extra layer of hesitation.
We’re also seeing the highest number of asking-price reductions since early 2024. Sellers who want to secure a deal before the New Year are increasingly trimming their prices to attract buyers who are becoming more value-driven.
Market Momentum Softens – But It’s Not All Negative
This time last year, the market was in a very different place, so it’s no surprise that this October looks softer by comparison. The conversations around potential tax changes are filtering through to buyer behaviour, and not all price brackets are being affected equally.
Here’s how the different sectors are responding:
- £2 million+ homes in the spotlight due to “mansion tax” rumours, have seen sales agreed fall 13% year-on-year.
- £500,000 to £2 million properties, which could be impacted by changes to stamp duty or capital gains tax, are down 8%.
- Under £500,000 homes, the core of the market, have slipped just 4%, suggesting most buyers here are more unsettled by the general mood than specific policies.
- Even with the monthly slowdown, the overall picture for 2025 so far is still encouraging. Sales agreed year-to-date remain 4% higher than the same period in 2024, showing that demand hasn’t disappeared it’s simply being held back by short-term uncertainty.
Affordability Slowly Improves, But Confidence Needs a Boost
The average two-year fixed mortgage rate now sits at 4.41%, down from 5.06% a year ago. This, combined with rising incomes, is quietly improving affordability across much of the market.
However, for confidence to properly pick up, two things need to happen:
- The Bank of England needs to continue easing rates, and
- The Budget needs to deliver clarity on property-related taxes.
Once those pieces fall into place, it’s likely that some of the pent-up demand we’re seeing will start to flow back into the market.
Regional Snapshot: Upper End Feels the Strain
High-value markets (particularly in London and the South) are feeling the pressure most acutely. Higher stock levels, combined with tax speculation, are encouraging buyers to slow down and see what happens.
Elsewhere, conditions are steadier. Mid-market and more affordable regions continue to attract interest, helped by improving mortgage products and a wider selection of homes.
Looking Ahead: A Market Waiting for Answers
With so much resting on the upcoming Budget, the short-term outlook is likely to remain cautious. That said, the underlying foundations of the market are stronger than the headlines might suggest. Demand is still running ahead of last year, affordability is gradually improving, and buyers have more choice than they’ve had for some time.
Once the policy landscape becomes clearer, the market could find its rhythm again — especially among those who have spent the past month waiting on the sidelines.
What This Means for You
For Sellers:
Realistic pricing is absolutely vital at the moment. With buyers approaching things more cautiously and plenty of stock available, presentation, strategy and sensible pricing will be key to securing a good sale.
For Buyers:
If you’re ready to move, this could be a window worth exploring. There’s more choice, mortgage rates are easing, and sellers are increasingly open to negotiation. Acting before confidence returns could mean securing a better deal.
All the information in this update comes from Rightmove’s House Price Index. Click here to read the full report.
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