Latest: December property market report

The penultimate month of 2025 was another jam-packed with property news. As well as the Autumn Budget, which we have reported about separately, there was house price news, rental insights and confidence-building announcements from the mortgage market. Here’s our November buying, selling and renting summary.

After pressure to aim for attractive and realistic sales values, sellers are showing signs of taking heed. The average asking price seen across Rightmove dropped 1.8% month-on-month in November. Vendors are now listing properties with a new average asking price of £364,833.

Avoid the cut

The portal’s November house price index revealed what happens when sellers push for an ambitious valuation, highlighting how the ‘list it once, list it right’ mantra is critically important. Last month, 34% of homes for sale on the market had their asking price cut. This is the highest level seen since February 2024.

Sales agreed up on 2024

‘Sold’ boards are still popping up everywhere, however. There were 4% more sales agreed this November, when compared to November 2024. A buyers’ market is in place, however, as there is a decade-high number of homes currently listed for sale. As such, accurate pricing will stay relevant throughout December - sellers will need a flexible mindset as they are outnumbering purchasers.

Zoopla’s November house prince index revealed annual property value inflation is running at 1.3%. It says the UK’s current average house price is £270,200. In monetary terms, a property has risen in value by £3,340 over the past year. House price inflation isn’t rampant though, as the average UK home has only increased in value by £200 during the last monitoring period.

The North-South house price divide remained evident in November. While Zoopla noted cooling values in the South, with decreases of between 0.1% and .2%, there were stand-out northern stars. Values are rising by up to 3% in the North West, with 2-3% uplift across Northern England, and in Wales and Scotland.

Looking at house types that have performed well over the last 12 months, semi-detached homes have been the clear winner. Zoopla says these have increased in value by 2.1% year-on-year. Terraced houses (1.8%) and detached homes (1.2%) have also risen in value. Only flats/apartments saw a value decrease – dropping by 1.1%. 

November brought positive mortgage news. Rightmove reported in November that the average two-year fixed mortgage rate had dropped by more than half a percent. Rates are averaging at 4.41%, compared to 5.06% for the same product this time last year.

Good news for those with small deposits

Moneyfacts’ UK Mortgages Trends Treasury Report provided further upbeat news. It found the cost of 90% and 95% loan-to-value mortgages had dropped to their lowest point in over three years. Competition among lenders to secure business was cited for this boost for those with 5% and 10% deposits.

How did the rental market perform in November? Values are cooling in line with the wintery weather, according to HomeLet. Its latest rental index found rents for newly agreed tenancies dropped 0.6% in its last reporting period. UK tenants are now paying an average of £1,337 per month.

Rent caps called into question

Rental values were a specific topic of conversation in Scotland last month. Results of widespread rent value analysis revealed rent caps have had the reverse effect. Scottish landlords were more likely than their English and Welsh counterparts to raise rents in 2024 and 2025. 

Additionally, Scotland was identified as only one of two GB regions where rents rose by more than 2% over the last year. In fact, 67% of Scottish landlords have increased what they charge to tenants this year – way above the 58% Great British (GB) average – although the size of the average increase was lower in Scotland compared to GB as a whole. 

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