Impact of Budget Speculation on the UK Housing Market

Declining Asking Prices

In the four‑week period ending 8 November, Rightmove reported that the average asking price for new sellers fell 1.8 %, a decrease of £6,589. This is the largest seasonal decline for this time of year since 2012. The fall brought the average price tag to £364,833. The reduction is attributed to uncertainty ahead of Chancellor Rachel Reeves’s autumn budget, which is expected to include significant tax changes.

House Price Index Performance

Rightmove’s House Price Index, which tracks monthly and annual changes in UK home prices, recorded a -0.5 % year‑over‑year decline in November, down from -0.1 % in October. The index reflects a broader softness in the market, particularly at the upper end, as buyers remain cautious.

Market Context

Analysts note that the decline in asking prices and the House Price Index mirror the market’s reaction to budget speculation. The anticipation of higher taxes and potential fiscal tightening has led sellers to lower prices to maintain competitiveness, while buyers hold back, creating a “ghost town” effect in certain high‑end segments.

Separately, Rightmove faces a potential £1 billion legal claim alleging that its fee structure for estate agents is excessive. The complaint, led by accountant Jeremy Newman, argues that the company’s 2024 profit margin of approximately 70 % indicates a dominant market position that could be abused. The outcome of this litigation could influence Rightmove’s revenue model and market dominance.

Investor Implications

  • Current Share Price: As of 13 November 2025, Rightmove’s closing price was £549.8 per share.
  • Price‑Earnings Ratio: The company trades at 21.17, reflecting investor expectations of future growth.
  • Historical Volatility: The 52‑week high of £827 and low of £474.5 indicate significant price swings, likely driven by macro‑economic factors and market sentiment.

Investors should monitor the budget announcement on 26 November for further signals that may affect both Rightmove’s revenue and the broader UK property market.