Rightmove has forecast that property prices will drop by an overall average of 2% next year, with some locations, property types and sectors faring much better than others.

The average asking price of newly listed property dropped by 2.1% this month (-£7,862) to £359,137, the firm said, adding: ‘This is a bigger dip in new asking prices than is usual at this time of year, as sellers who are determined to find a buyer quickly adjust their expectations and adapt to a less frenzied housing market. This means that at the end of 2022, average asking prices are 5.6% higher than at this time a year ago, only slightly below the 6.3% growth recorded in 2021.’ 

Tim Bannister at Rightmove added: “Economic headwinds including rapidly rising mortgage costs mean that some would-be buyers may have paused their plans for the foreseeable future. However, over the past two weeks the number of people enquiring to estate agents is up 4% on the same period in 2019. 

“Before sending an enquiry, future buyers need to consider what they could purchase, and the number of views of homes for sale on Rightmove is up 11% on last year. This indicates that there are many ready-to-go buyers, monitoring and waiting for a calmer market in 2023.”