The average price of property coming to market for sale in December 2025 fell by 1.8% (-£6,695) to £358,138 according to Rightmove.
Whilst prices usually fall in December, this year’s price fall is larger than the ten-year average drop of 1.4%, meaning that 2025 will end with average asking prices 0.6% (-£2,059) lower than a year ago, with price growth this year strongest in the North West of England (+2.6%), flat in London (0.0%) and lowest in the South West (-2.7%).
Colleen Babcock, property expert at Rightmove, said: “Lower price growth supported buyer affordability and drove activity in the first half of the year, even after the April stamp duty deadline in England. In the second half of 2025, uncertainty caused by rumours of property tax changes in November’s Budget swirled, some from as early as August. This had an impact on pricing and activity, as sellers tried to entice nervous buyers.
“The market will soon benefit from the traditional boost in home-moving activity from Boxing Day. Rightmove’s Boxing Day Bounce is an annual event where we see many begin or resume their plans to move after the distraction of Christmas.”
Rightmove is predicting stronger housing market activity in the New Year, leading to modest upwards price pressure, and causing the average price of property coming to the market for sale to rise by 2% in 2026.
Tanya Elmaz, managing director of intermediary sales at Together said: “Another fall in house prices indicates how delicate buyer confidence was in the run up to the Budget - and how the government hasn’t done enough to stimulate the market.
“Following all the tax changes, questions remain as to whether tax changes to rental income and the new mansion tax will slow momentum in the market over the long term. The mansion tax risks forcing people to sell-up on homes which they suddenly can’t afford due to surcharges, creating downward pressure on prices. The additional 2% income tax for landlords may force more of them to exit the market entirely, damaging the essential UK rental market and reducing house prices further.”
