UK Property Market Update December 2025 | Rightmove Data & 2026 Outlook

What Rightmove’s Latest Data Tells Us About Prices, Activity, and 2026

Rightmove’s December 2025 House Price Index provides a clear snapshot of a market that slowed towards the end of the year, largely due to seasonal effects and Budget uncertainty — but with early signs pointing toward a more stable and active start to 2026.

This report is based on nearly 66,000 newly listed properties, making it the largest and most up-to-date monthly sample of asking prices in the UK housing market

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A Larger-Than-Usual December Price Dip

The national average asking price fell by 1.8% in December, a reduction of £6,695, bringing the average asking price to £358,138. While prices typically fall in December, this drop is larger than the ten-year seasonal average decline of 1.4%.

As a result, prices end 2025 0.6% lower than a year ago, equivalent to a £2,059 annual reduction. This marks a modest correction rather than a sharp downturn, but it does reflect the quieter conditions seen in the latter half of the year

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A Year of Two Very Different Halves

Rightmove’s data highlights a clear contrast between the first and second halves of 2025.

In the first half of the year, market conditions were comparatively positive:

New sellers entering the market were 9% higher than the same period in 2024
Buyer demand ran 3% ahead of last year

However, this momentum faded in the second half of 2025, as uncertainty around potential property tax changes and Budget speculation affected confidence:

New seller listings fell to 4% below 2024 levels
Buyer demand dropped to 6% behind last year

Despite this slowdown, it is important to note that total sales agreed across the whole of 2025 were still 3% higher than in 2024, showing that transactions continued, albeit at a slower pace

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Budget Uncertainty and Its Impact

Rightmove attributes much of the second-half slowdown to prolonged Budget speculation, which began as early as August and peaked ahead of November’s Budget.

A survey of over 10,000 potential movers found that nearly one in five delayed their moving plans while waiting for Budget clarity. This hesitation affected both pricing strategies and activity levels, particularly among discretionary movers and higher-value sellers

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In London’s top-end market — one of the most sensitive segments — early signs of recovery appeared immediately after the Budget, with new high-value listings rising by 24% week-on-week once uncertainty lifted

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The “Boxing Day Bounce” and Early Signs of Rebound

Rightmove now expects a larger-than-normal Boxing Day bounce, as sellers who paused during the autumn prepare to launch properties immediately after Christmas.

Historically, Boxing Day marks the start of a renewed surge in property searches and listing activity, and this year Rightmove expects an even stronger effect due to:

Pent-up seller supply
Buyers returning with improved affordability
Greater clarity following the Budget

While festive seasonality delays some of the rebound data, Rightmove states that early indicators already suggest activity is picking up

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Mortgage Rates and Affordability Are Improving

One of the most important factors supporting confidence heading into 2026 is improving affordability.

According to Rightmove’s mortgage tracker:

The average two-year fixed mortgage rate is now 4.33%
This compares with 5.08% at the same time last year

Combined with modest price reductions, rising wages, and a relaxation of mortgage lending criteria — including loan-to-income and stress-testing adjustments — many buyers are now able to borrow more than they could at the start of 2025

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Time to Sell and Stock Levels

Nationally, the time taken to secure a buyer has edged up towards the end of the year, reflecting the slower winter market. Average selling times increased into the 70-day range, with London taking longer than the national average.

At the same time, buyer choice remains high, with average stock per agent sitting at elevated levels compared to recent years. This balance means:

Buyers retain negotiating power
Sellers must remain realistic on pricing and presentation

Rightmove notes that correctly priced homes continue to sell, while over-optimistic listings are more likely to stall

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Regional Performance Varies

Price movements across the UK continue to vary by region:

North West England recorded the strongest annual growth at +2.6%
London remained broadly flat year-on-year
South West England saw the weakest performance at -2.7% annually

These differences underline the importance of local market knowledge, as national averages do not reflect conditions in individual towns or postcode areas

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Rightmove’s Outlook for 2026

Looking ahead, Rightmove forecasts that average new seller asking prices will rise by 2% in 2026.

The expectation is that next year’s market will resemble the stronger first half of 2025, rather than the subdued second half, supported by:

Improved mortgage affordability
Stable employment and wage growth
High buyer choice encouraging steady activity

However, Rightmove is clear that pricing discipline will remain essential, and sellers will still need to position homes competitively to attract attention in a well-supplied market

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Final Thoughts

December’s figures show a market that paused rather than weakened, with seasonal factors and political uncertainty weighing on activity. With those pressures now easing, and affordability improving, the foundations for early-2026 activity appear stronger than the final months of 2025 suggested.

As always, national data provides useful context — but local conditions will determine outcomes for individual buyers and sellers.