New seller asking prices dropped by a seasonal 1.7% (-£6,395) this month to £360,197, in line with the usual December monthly fall, with sellers’ pricing power diminishing as Christmas approaches.

According to Rightmove, property prices are ending the year 1.4% above December 2023, and the property portal predicts that new seller asking prices will rise by 4% next year, with forecast mortgage rate drops set to further improve affordability and stimulate market activity

Despite the festive lull, activity remains substantially stronger than the same period a year ago, with the number of sales being agreed up by 22%, and new buyer demand up by 13%.

Tom Bill, head of UK residential research at Knight Frank, commented: “The UK property market appears to be in better health than it is. There will be downwards pressure on activity and prices as the impact of higher mortgage rates since the Budget starts to feeds through. Meanwhile, a number of buyers are acting ahead of April’s stamp duty increase, which is temporarily boosting demand. A more profound sense of confidence will only return once the UK economy is heading decisively in the right direction and more sub-4% mortgages become available.”