More than a third of home sellers cut asking prices by £7,000 in November

Increasing numbers of home sellers across the UK are reducing their asking prices ahead of the Autumn Budget.

According to data from property portal Rightmove, November has seen the highest level of asking price reductions since February 2024, with over one-third (34%) of properties reducing their asking prices, and average cuts of 7%.

The cautious mood in the housing sector comes amid widespread speculation about potential tax reforms, including the introduction of a mansion tax and changes to existing property levies.

This environment has particularly impacted the upper end of the market, where sellers are sharply adjusting prices to stimulate buyer interest during what is described by Rightmove as a ‘hesitant’ period.

Rightmove’s analysis reveals average asking prices dropped by £6,589 (1.8%) in November to £364,833, bringing them 0.5% below levels from a year earlier and marking the largest fall in prices at this time of year
since 2012.

The slowdown coincides with a record number of homes listed for sale, the highest in a decade, pressuring sellers to revise prices to attract buyers.

Pressure mounts in the luxury property market

The luxury sector is particularly vulnerable, with sales of homes priced over £2 million falling 13% year-on-year.

This decline reflects mounting apprehension about a possible mansion tax alongside broader property tax reforms anticipated in the Budget.

Correspondingly, new listings in this high-price bracket have dropped by 9% compared to last year.

Similarly affected are properties within the £500,000 to £2 million range, also perceived as at greater risk of increased taxation.

Sales in this segment declined by 8%, contributing to sellers’ caution and price reductions.

Rightmove’s property expert Colleen Babcock said: ‘Rumours of the contents of the forthcoming Budget are affecting the market, as we’re seeing a greater hesitation in sales activity, especially at the upper end, which has been the focus of most of the discussion.

‘While there is also a general unease at how the Budget may impact personal finances, the majority of home moves would be unaffected by the rumoured changes to property taxes.’

Other trends in the property market

Property expert Jonathan Rolande, speaking on GB News, highlighted a ‘wait and see’ stance among buyers, driving an 8% dip in buyer demand year-on-year and a 3% reduction in agreed sales.

This cautious approach is especially marked in London and the South East, where buyers appear to be deferring transactions pending clarity on the fiscal outlook.

For example, London estate agency Foxtons has reported a 7% fall in home sales revenues during the third quarter versus the previous year, linking the slowdown to economic uncertainties and tax hike fears.

Meanwhile, major homebuilder Taylor Wimpey echoed these trends, reporting a slowdown in autumn sales.

Rightmove’s Babcock said: ‘It appears that the usual lull we’d see around Christmas time has arrived early this year, and sellers who are keen to move are having to work especially hard to entice buyers with competitive pricing.’

But despite current unease, some optimism exists that easing mortgage rates and rising wages could eventually boost affordability and market activity once the Budget announcements clarify the tax landscape.

Babcock expressed cautious hope that if base interest rates fall in December alongside improvements in tax certainty, the housing market may regain momentum in early 2026.

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