UK house prices have fallen 1.8% this month to £364,833, marking the sharpest November decline since 2012, according to Rightmove’s latest House Price Index. The data suggests Budget speculation is cooling demand, particularly in higher-value brackets, which may create a short buying window for landlords as pricing softens and mortgage rates continue to ease.
Shift in pricing pressures reflects market pause
Rightmove reports that over one-third (34%) of homes currently on the market have now had an asking-price reduction, with an average cut of 7%. That’s the highest rate of price adjustments since February 2024 and signals what many agents are calling an early Christmas slowdown.
Colleen Babcock, Property Expert at Rightmove, said the wider sentiment is hesitation rather than distress:
“Rumours of the forthcoming Budget are affecting the market, especially at the upper end. While mortgage affordability is improving, the market needs rate cuts and clarity on taxes before confidence returns.”
For landlords, the dynamic is nuanced. While buyer-side hesitation weakens resale sentiment, softer prices support acquisitions — especially where yields have risen alongside rent growth in the last 12 months, particularly in regions such as Greater Manchester (£1,196 avg rent) and the South West (£1,368) based on recent ONS figures.
Upper market stalls while mainstream demand holds steadier
Sales agreed for properties over £2 million are down 13% year-on-year, closely linked to fears of a potential mansion tax. Homes priced between £500,000 and £2 million have seen sales agreed drop 8%, tied to rumours around Stamp Duty and possible Capital Gains reform.
By contrast, the mass-market segment — properties under £500,000, accounting for roughly three-quarters of UK transactions — has only seen a 4% decline in sales agreed.
This matters because most landlord purchases and remortgages sit below that threshold. The entry-level and mid-tier buy-to-let pipeline remains active, even as wealth-driven discretionary buyers sit on the fence.
Mary-Lou Press, President of NAEA Propertymark, warned the mixed messaging is weighing on confidence:
“Uncertainty over the Budget is creating hesitation. While affordability is improving, the rumoured reforms risk discouraging transactions until clarity returns.”
Many agents report landlords quietly returning — especially cash purchasers — looking for discounted stock while homeowners withdraw or wait.
Mortgage rates soften ahead of potential December rate cut
Rightmove reports the average two-year fixed mortgage now sits at 4.41%, down from 5.06% this time last year. Lenders have begun competing again, with weekly rate reductions now common — a trend investors will welcome.
Matt Smith, Rightmove’s mortgage expert, noted:
“There’s still a good chance of another rate cut before the end of the year. Once the Budget announcements pass, movers can plan with more confidence.”
Some agents say the uncertainty is already catalysing opportunity. In Prime Central London, activity among US buyers and pied-à-terre investors is reportedly rising — buyers who are less sensitive to domestic tax shifts.
Editor’s view
Landlords watching the market should note the dynamics are less about collapse and more about pause. Stock levels are high, demand is selective, and political noise is suppressing sentiment — at least temporarily. For well-financed investors, softened asking prices and improving mortgage rates could create a tactical winter buying window before clarity returns and activity rebounds into early 2026.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 17 November 2025
Sources: Rightmove UK Market Index, NAEA Propertymark, ONS Rental Index, UK Finance
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