December Market Update

November was another month of highs and lows. Once everything evened out, however, it was actually a stable four weeks. Here are 11 announcements and reports that caught our eye.

1) Autumn Budget - a soft landing: November’s Budget didn’t change the property landscape as rumour suggested. Although rental income tax will rise and a new tax announced for homes worth more than £2 million, the home moving masses escaped relatively unharmed. 

Supply influenced sellers

2) Asking prices cooled: with more properties for sale now than any time in a decade, it was inevitable something had to give. In November, it was asking prices. Rightmove said these dropped 1.8% last month, with the average price of a newly listed property now £364,833.

Sales remained strong

3) Budget failed to dampen figures: although the latter half of 2025 was slightly marred by negative Budget build up, Rightmove reported pleasing ‘sales agreed’ figures. Its data showed the number of vendors accepting offers is 4% higher now, when compared to the same point in 2024.

4) Mortgage rates decreased: banks and building societies became embroiled in a competition for business, finding a positive way to attract custom. Lenders, including HSBC, Santander, TSB, NatWest and Principality Building Society, cut their rates. As a result, Moneyfacts said average mortgage rates dropped back below 5%.

5) The average house price inched upwards: Zoopla’s latest report detailed how the UK’s average house price crept up just £200 month-on-month but there were regional variations. Scotland, Wales, the West Midlands and all Northern regions saw house prices rise by 1.9% or more. Conversely, there were miniscule falls in London (-0.1%), the South East (-0.1%) and the South West (-0.2%).

6) Cities divided into a North-South league table: Zoopla also produced a table of 20 UK cities, organising them in order of annual house prices increases. Eight of the top 10 positions were taken by cities north of the West Midlands. Liverpool (+3.3%), Glasgow (+2.6%) and Newcastle (+2.4%) saw the highest price rises in Great Britain, with Birmingham (+1.9%) and Cardiff (+1.6%) mid-table. At the bottom were Cambridge (-0.7%) and Bournemouth (-2.0%).

7)  The most valuable house types revealed: semi-detached homes are proving to be the most valuable in 2025, rising 2.1% between October 2024 and October 2025. The value of terraced properties has increased 1.8%, while detached homes have risen in value by 1.2%. Only flats/apartments have suffered, with price falling -1.1%.

Rental index revealed up & downs

8 ) Slight falls recorded in November: some of the heat in the UK’s rental market has dissipated. HomeLet’s rental index showed the average rent for newly agreed tenancies decreased 0.6% in November. This leaves new tenants paying a monthly average of £1,337.

9) Rents still up year-on-year: while rents dropped a little in November, HomeLet’s analysis shows an unassailable head of steam has built. To date, rents have increased 2.3% annually. Every region, bar the South East, has seen rents for new tenancies increase. 

Regional winners revealed

10) Rents in some areas soared: some regions were streets ahead in terms of month-on-month rental growth in November. The East Midlands was the leader of the pack, with new rents rising 4.8%. There were also increases in Scotland (2.8%), and the North East (4.1%).

11) Money and mortgages added to the education agenda: students in England will soon leave school with a much better idea of how to manage their money – and buy a home. Financial literacy will become a compulsory subject on the national curriculum from September 2028. Topics to be covered include mortgages, budgeting, compound interest and money management.

If you would like to know more about your local property market, please get in touch.