UK Housing Market Hesitant Ahead of Budget

The UK housing market is showing signs of caution as buyers and sellers await clarity from the upcoming Budget. According to Rightmove, average new seller asking prices fell by 1.8% in November, dropping £6,589 to £364,833—a larger-than-usual seasonal decline. This slowdown is being driven by a record number of homes on the market and the usual late-year lull, now intensified by Budget uncertainty.

Price reductions on homes already for sale are also at their highest level since February 2024, with an average reduction of 7%, highlighting the current buyers’ market conditions. Breaking it down by sector (excluding inner London):

• First-time buyers: £225,128 (-0.8% MoM)

• Second-steppers: £340,515 (-1.0% MoM)

• Top of the ladder: £657,758 (-2.7% MoM)

High-end properties are particularly affected by speculation around potential tax changes: sales agreed for £2 million+ homes are down 13% YoY, while properties priced £500,000–£2 million are down 8% YoY. Homes under £500,000 have only seen a 4% drop in sales agreed, suggesting that general Budget jitters, rather than specific policy concerns, are influencing the mass-market sector.

Despite these short-term declines, year-to-date agreed sales remain 4% above 2024 levels, supported by falling mortgage rates and rising wages, with the average two-year fixed mortgage rate at 4.41%, compared with 5.06% this time last year.

At Fearnalls, we’ve observed similar trends locally. Buyers are taking a more cautious approach, particularly in the higher-value market, while sellers who are keen to move are making their homes more attractive with competitive pricing and thoughtfully presented properties.

Colleen Babcock, property expert at Rightmove, summarises the market well:

“The decade-high number of homes available continues to restrict price growth, with sellers needing competitive pricing to attract buyers. Rumours about the Budget are creating uncertainty, particularly at the upper end. If we see mortgage rate reductions alongside a December Bank Rate cut, 2026 could start on a more positive note.”

For those considering selling in Chester and the surrounding areas, this is a reminder that well-presented homes at the right price are still attracting buyers, even in a cautious market. Our advice is to stay informed about market conditions and work with local experts who can help position your property effectively.

Read the full Rightmove report here: Rightmove November 2025 Market Update