What to expect from the UK property market before Christmas

As the festive season approaches, the UK property market is experiencing its own flurry of activity, with prospective buyers, sellers, and investors eagerly anticipating what the final weeks of the year may bring. Traditionally, the lead-up to Christmas sees a slight slowdown in transactions as people focus on holiday preparations, but this year is shaping up to be different. With economic shifts, interest rate changes, and regional market trends playing a significant role, understanding what to expect before the year wraps up is crucial for anyone navigating the property landscape.

Recent insights from Rightmove data

Recent data from Rightmove offers valuable insights into the current landscape of the UK property market. Notably, the average asking price for properties coming onto the market has decreased by 1.4% this month, a drop of £5,366, bringing the average price to £366,592. This reduction is more pronounced than the typical 0.8% seasonal decline, suggesting a shift in market dynamics.

The autumn Budget has been a significant factor influencing these changes. Before the Budget, there were concerns among potential buyers, which have now turned into challenges following its release. This has resulted in a more substantial seasonal slowdown in prices as we head towards Christmas.

Despite these hurdles, the property market is demonstrating resilience. Activity levels are higher than this time last year, partly due to the reduction in the Bank Rate. This has contributed to a 26% increase in the number of agreed sales compared to the same period in 2023. Additionally, there’s been a 6% rise in the number of new sellers entering the market, indicating sustained interest in selling homes.

Rightmove’s real-time data reveals early signs of increased buyer interest following the Bank Rate cut. However, it’s expected that this activity will taper off as the festive season nears. Looking further ahead, Rightmove forecasts a 4% rise in the average asking prices for new sellers in 2025. This projection is based on expectations of lower mortgage rates, which could release pent-up demand and apply upward pressure on prices.

The UK property market before Christmas is shaped by a combination of reduced asking prices, higher activity levels compared to last year, and cautious optimism for the future. Rightmove’s data underscores the importance of strategic pricing and staying informed about market trends to navigate these shifting dynamics effectively.

Assessing your asking price

For those thinking about putting their property on the market, determining the right asking price is essential. As mentioned above, the average price for new listings has dropped by 1.4% this month based on data from Rightmove, more than the usual 0.8% decline seen at this time of year. This trend underscores the critical role of a well-thought-out pricing strategy in a competitive and price-sensitive environment.

The recent economic landscape, particularly the Budget, has had a significant impact on market behaviour. Initial anxieties have evolved into a more cautious stance among buyers, leading to a larger-than-usual seasonal dip. For sellers, grasping these dynamics is key to setting an appropriate and appealing asking price.

While further Bank Rate reductions are expected, the pace may be slower than initially predicted, implying that improvements in affordability could take longer to come to fruition. Sellers must stay informed and adaptable in response to these shifts. Tim Bannister, Director of Property Science at Rightmove, notes that some potential movers are waiting for more clarity following the Budget and anticipated lower mortgage rates later in the year, highlighting the necessity for strategic pricing decisions.

He said: “There’s been a lot of news to digest for home-movers over the last few weeks and it appears that the market may still be chewing it over. We had been seeing a drop-off in buyer demand, both in the lead-up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp-duty charges for most home-movers and second-home buyers, and some first-time buyers. However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily.

“Zooming out of these short-term trends, the big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improve affordability for more of the mass-market.”

Time to take action

If you’re thinking of moving in Chelmsford the beginning of next year, don’t miss out on the Boxing Day demand, contact our Charles David Casson team on 01245 835859.