House prices in the UK experienced a significant decline in November, the steepest drop for the month since 2018, as sellers adjusted their expectations in an effort to expedite sales amidst challenging market conditions.
The latest house price index from Rightmove revealed that the average new selling asking price decreased by 1.7% in November, settling at £362,143.
This decline is in stark contrast to the 0.5% increase observed in October, and represents a notable year-on-year fall of 1.3%.
Rightmove’s analysis suggests that the approach of Christmas is influencing sellers to lower prices, aiming to attract buyers who are currently grappling with financial constraints.
This price adjustment strategy reflects a market adapting to the reduced affordability for many, caused primarily by higher mortgage rates.
While agreed sales remain 10% lower than the pre-pandemic levels of 2019, there has been an improvement from October, when sales were 15% below 2019’s figures.
Tim Bannister, director of property science at Rightmove, said: “We’d expect to see a drop in new seller asking prices in the last couple of the months of the year, as serious sellers start to cut through the Christmas noise with an attractive price to secure a buyer.
“However, the larger-than-usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers come to market with more enticing prices.
“Buyers are still out there, but for many their affordability is much reduced due to higher mortgage rates.”
