Sellers prep for "Boxing Day Bounce"
The average asking price for properties coming to market in the UK fell by 1.7% this month, equivalent to £6,395, to £360,197, according to data from Rightmove.
The decline is in line with the usual seasonal slowdown in December, as sellers price more competitively to attract buyers during the holiday period.
Despite the monthly drop, prices are still up by 1.4% compared to December 2023, in line with Rightmove’s annual forecast of a 1% increase.
Tim Bannister, director of property science at Rightmove, noted the need for December sellers to appeal to “festivity-distracted buyers.” He pointed to the “Boxing Day bounce” as a key moment for market activity.
“Each year, our real-time data can pinpoint the exact moment when prospective movers flood onto Rightmove and get their 2025 move started,” he said, adding that the post-Christmas surge has become a staple of the housing calendar, as both buyers and sellers return to the market.
Rightmove data shows the number of sales agreed is up 22% compared to this time last year, while new buyer enquiries have risen by 13%. These trends are expected to fuel the Boxing Day surge, which last year saw buyer demand jump by 273% between Christmas Day and Boxing Day.
However, the looming March 31 stamp duty deadline is creating a sense of urgency among certain sellers. Rightmove’s data indicates that listings for smaller properties in higher-priced regions, such as London and the South East, have risen sharply. Over the past four weeks, new listings for first-time buyer homes (two bedrooms or fewer) in London increased by 20%, followed by a 16% rise in the South East.
The stamp duty changes will see tax relief for properties priced between £250,000 and £500,000 come to an end, leading to higher charges for many buyers. While affordable regions such as the North East are less affected — prices for first-time-buyer homes there rose 1.0% this month — sellers in pricier areas face pressure to act quickly.
Rightmove predicts that asking prices will rise by 4% overall in 2025, helped by anticipated mortgage rate reductions. Lower rates would likely stimulate activity and boost buyer confidence, particularly following a year of significant challenges for borrowers.
“Looking at our data and the UK’s underlying housing needs, there are lots of reasons to be positive about next year,” Bannister said. However, he acknowledged potential obstacles, including the impact of higher stamp duty, wage growth trends, and the overall economic environment.
“After the important first three months of the year in 2025, a lot depends on how quickly normal activity is resumed with higher stamp duty in England,” he added. “A bank rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence.”
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