Average new seller asking prices dropped by 1.8% month-on-month in December to £358,138, Rightmove has revealed.

The online property portal’s latest house price index report showed that this follows a 1.8% fall in house prices in November.

Rightmove stated that house prices fell by 0.6% year-on-year, which is a "larger than usual December drop". The firm said this fall in new seller asking prices was due to Budget uncertainty, which has been evident since August.

However, a post-Christmas boost is expected in home-moving, with the number of top-end London sellers up by 24% week-on-week.

Rightmove stated that improved buyer affordability and choice for buyers suggest that the market will offer an encouraging first half of the new year, with house prices estimated to increase by 2% in 2026.

Property expert at Rightmove, Colleen Babcock, said: "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. With the turkey and trimmings barely off the table, each year we see people heading straight to Rightmove to browse the fresh listings for sale and imagine how different next Christmas could look.”

Managing director of intermediary sales at Together, Tanya Elmaz, stated that the latest fall in house prices shows how delicate buyer confidence was in the run up to the Budget, with the Government not doing enough to stimulate the market.

She concluded: "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.

"Nevertheless, a strong chance of an interest rate cut in December could be a positive way to see out the year as it may lead to lower borrowing costs. Those who are keen to move forward with their property ambitions should explore the range of financial products and schemes available. Speaking to a mortgage professional is a great way to assess all the options available before making a final decision."

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