As 2025 draws to a close, the latest Rightmove House Price Index paints a picture of a market that has ended the year slightly softer than it began. Across the UK, average asking prices have fallen by around 1.8% both in November and December. Resulting in the national average asking price sitting at approximately £358,138, with the average asking price for Yorkshire and the Humber being £245,178. This level is about 0.6% lower than at the same time last year, representing a modest overall contraction in prices as the year closes out. (Rightmove)
Why Have Prices Dipped?
There are a number of factors behind the recent dip in prices, but the most significant has been uncertainty surrounding the Budget and broader economic direction. In the second half of 2025, speculation about tax changes and government policies affected both buyer and seller confidence. Many potential movers chose to wait and see what would be announced. This effectively suppressed activity in the crucial autumn selling season.
This built-in hesitation has translated into a more cautious market overall, with price adjustments made by sellers keen to attract interest and stand out in a competitive landscape. While seasonal slowdowns at the end of the year are normal, this year’s decline was larger than the 10-year average December drop. Indicating that the market was feeling the effect of that uncertainty more than in typical years. (Rightmove)
So What Does This Mean for Buyers and Sellers?
For buyers, lower price levels, even if modest, are an encouraging sign, particularly when combined with improving mortgage affordability. As house prices ease and lenders become more competitive, buying a home has become more accessible for many, especially first-time buyers. Mortgage rate competition and greater borrowing capacity are key drivers behind expectations of strengthened activity in the coming months, particularly once the market emerges from the holiday lull.
For sellers, this environment means that pricing strategy is more important than ever. Homes that are marketed at realistic levels, well presented and targeted correctly are more likely to attract serious interest. The patterns we’ve seen at the end of 2025 suggest that the market is shifting slightly in favour of prepared, informed sellers who are working with agents who understand local dynamics.
Looking Ahead: A Modest Rebound in 2026
Despite the end-of-year slowdown, there is reason to be optimistic about the year ahead. Rightmove’s own forecasts suggest that asking prices could rise by around 2% in 2026, as post-Budget clarity returns to the market and buyer confidence increases.
We share this outlook. We anticipate a modest recovery through 2026, with demand picking up as affordability improves and more buyers re-enter the market following a period of caution. This balanced growth reflects a return toward normal market rhythms, moving away from the uncertainty seen in late 2025, and towards a more predictable, steady environment.
The key message for anyone contemplating a move? Preparation and timing will matter. Whether you’re thinking of buying or selling, connecting with an experienced local agent now will position you to take advantage of the opportunities that 2026 is expected to bring.
Thinking about moving in 2026? Get in touch with your local branch today.
