UK Home Prices Plummet as Budget Speculation Looms Large
As the country waits with bated breath for Chancellor Rachel Reeves' upcoming budget on November 26, the housing market is bracing itself for a potentially devastating impact. Asking prices across the UK have plummeted by 1.8% - or £6,589 - in just one month, according to data compiled by Rightmove.
This sharp decline has pushed the average price tag on British homes put up for sale down to a mere £364,833. It's not entirely uncommon for prices to dip during this time of year; historically, the average monthly drop in November has been 1.1% over the past decade.
However, this current slide is one of the largest since 2012, with an astonishing 34% of homes on the market reducing their asking prices by a whopping 7%. This phenomenon is largely attributed to speculation about the potential tax changes announced in the upcoming budget - particularly for luxury properties.
Experts warn that buyers are holding off, waiting anxiously to see how their finances will be affected. As a result, sellers are feeling the pinch as they struggle to entice buyers with competitive pricing.
Colleen Babcock, a property expert at Rightmove, notes that "the usual lull we'd see around Christmas time has arrived early this year." She attributes the current market downturn to sellers being cautious and avoiding overpricing their homes in order not to get left behind by competitors.
Interestingly, however, homes priced under £500,000 have bucked the trend, showing less sensitivity to the budget speculation. The question on everyone's lips remains: how will Chancellor Reeves' fiscal set piece shape the future of the UK housing market?
As the country waits with bated breath for Chancellor Rachel Reeves' upcoming budget on November 26, the housing market is bracing itself for a potentially devastating impact. Asking prices across the UK have plummeted by 1.8% - or £6,589 - in just one month, according to data compiled by Rightmove.
This sharp decline has pushed the average price tag on British homes put up for sale down to a mere £364,833. It's not entirely uncommon for prices to dip during this time of year; historically, the average monthly drop in November has been 1.1% over the past decade.
However, this current slide is one of the largest since 2012, with an astonishing 34% of homes on the market reducing their asking prices by a whopping 7%. This phenomenon is largely attributed to speculation about the potential tax changes announced in the upcoming budget - particularly for luxury properties.
Experts warn that buyers are holding off, waiting anxiously to see how their finances will be affected. As a result, sellers are feeling the pinch as they struggle to entice buyers with competitive pricing.
Colleen Babcock, a property expert at Rightmove, notes that "the usual lull we'd see around Christmas time has arrived early this year." She attributes the current market downturn to sellers being cautious and avoiding overpricing their homes in order not to get left behind by competitors.
Interestingly, however, homes priced under £500,000 have bucked the trend, showing less sensitivity to the budget speculation. The question on everyone's lips remains: how will Chancellor Reeves' fiscal set piece shape the future of the UK housing market?
ugh, dont even get me started! if i were a seller rn, i'd be super stressed out about all this budget speculation 
. like, what if there is no tax change? or what if it's more than we expect? 
either way, its already affecting the market - prices are dropping and sellers are taking ages to sell their homes 
. i know some ppl might think its good for buyers, but honestly, im a seller... its scary to put our homes up for sale with all this uncertainty 
. at least those houses under £500k seem immune to it tho? 
, I cant even right now!!! 
! £6,589 is a lot to swallow, especially when they're already struggling with rising mortgage rates & inflation 
. And now experts are saying that buyers are just waiting around for something to happen 
! Does anyone know if this will be a temporary thing or is it here to stay? I need some answers, stat 
!
. It's not just the budget that's causing stress, but also the uncertainty about what's going to happen next 
.
! Like, yeah, prices are dropping and sellers are getting nervous, but that just means they're gonna get more realistic about what they can sell their homes for. It's all about finding that sweet spot where buyers and sellers meet in the middle 
!
, I mean, can't we just focus on the actual issue here without all these 'experts' spouting off about speculation this and tax changes that? It's like they're more concerned with being right than actually helping us out. And another thing, what's up with the price drops? Is it really a good idea to try to undercut each other by £7k just because some Chancellor is going to make some noise about taxes? 
I'm shocked, SHOCKED 
. Like what did they think was going to happen? 
and sellers are just sitting on their hands, waiting for someone else to make a move 
. It's not like it's anyone's business but their own... or something 