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Rightmove Reports UK House Prices Slump by GBP66,950 in December - Biggest Drop in a Year

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  Published in House and Home on Sunday, December 14th 2025 at 21:04 GMT by The Irish News

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UK Housing Market Update: Rightmove Reports a £66,950 Drop in the Average House Price for December

In a recent release that has caught the attention of both buyers and policymakers, property‑search website Right Move revealed that the average price of a UK house fell by almost £67 k from November to December. According to Right Move’s proprietary data set, the average house price in December was £324 400 – down from £391 350 in the previous month. This slide is the largest decline in a year and signals a cooling in a market that had seen a steady climb for months on end.

How Right Move Calculates the “Average” House Price

Right Move’s average is derived from the median of the price ranges listed on the site – it does not reflect actual transaction prices. As the article points out, the figure is therefore a useful barometer of market sentiment and listing activity, but it can diverge from official indices such as the UK House Price Index (UKHPI) or Halifax’s market reports. The website’s press release – linked in the article – provides a detailed methodology, explaining that the calculation uses the midpoint of the price band for each property on the site and then finds the median across all listings. This method captures the supply side of the market and the pricing expectations of sellers, rather than the final price paid.

The Numbers in Context

• December average: £324 400
• November average: £391 350
• Drop: £66 950 (≈17 %)

This 17 % slide is the steepest in a year, according to Right Move. In comparison, the UKHPI reported a 3.4 % month‑on‑month decline for the same period, while Halifax’s latest figures showed a 0.6 % fall. The disparity illustrates how the listing market can react more sharply to changes in buyer demand and seller expectations than the broader transaction‑based indices.

The article cites that December’s drop is the largest monthly decline since the market’s recovery from the 2008 crash, a fact that the source highlights as a potential warning sign for mortgage lenders and the Bank of England. It also notes that this shift coincides with a steep rise in mortgage rates – the Bank of England’s base rate is 5.25 %, and variable‑rate lenders have increased their rates by several basis points in the past month.

Regional Variations

The article breaks down the data by region and finds that the South East – which has traditionally been the most expensive part of the UK – saw the largest price fall. In London, for example, the average fell from £500 k in November to £470 k in December, a 6 % dip. The North West and Midlands, by contrast, experienced a smaller decline – only around 4 %. In some localities, such as certain parts of the North East, prices actually edged up slightly, reflecting persistent demand in more affordable markets.

Right Move’s team, quoted in the article, attributes the regional differences to a combination of supply constraints and buyer behaviour. In the South East, the “tight supply” and “higher buyer expectations” have made sellers more reluctant to lower prices, but a spike in mortgage rates has dampened the appetite of many prospective buyers. In the North West, a broader range of listings and a higher proportion of new builds have helped cushion the decline.

What’s Driving the Dip?

The article weaves together several threads that might explain why December’s average price fell so sharply:

1. Higher Mortgage Rates – As the Bank of England’s base rate rises, the cost of borrowing climbs. This squeezes buyers, particularly those looking for larger homes or who rely on variable‑rate mortgages.

2. Economic Uncertainty – A mix of concerns about a potential recession, rising inflation, and geopolitical tensions has made buyers more cautious. Many are waiting to see how the macro‑economic environment evolves before making a large purchase.

3. Supply Constraints – Despite a record number of new listings in 2023, construction delays and supply chain disruptions still limit the number of homes entering the market. Sellers may hold out for higher offers, but the rising cost of mortgages keeps them from lowering prices significantly.

4. Seasonal Factors – December is traditionally a slower month in the housing market. Buyers often postpone purchases until the new year when the market tends to pick up again.

The article also includes a short interview with a Right Move analyst, who notes that the “average” figure can swing dramatically based on even a few large‑price homes listed in the market. A single luxury property priced at £3 million, for example, can skew the median upward and mask declines in lower‑to‑mid‑range homes.

Implications for Buyers and Sellers

• Buyers: With prices falling, there could be a window of opportunity for those who have been waiting on the sidelines. The article suggests that buyers should look for listings that are priced below market average, especially in the North West and North East where price gains have been modest. It also advises buyers to keep an eye on the Bank of England’s policy announcements, as further rate hikes could accelerate price declines.

• Sellers: For those already in the market, the article warns that sellers should be cautious about lowering asking prices too sharply. Right Move’s data indicates that buyers are still willing to pay near‑market prices in many regions, but the overall trend is downward. Sellers should focus on making properties move‑ready, enhancing staging and digital marketing to appeal to buyers who are comparing more listings than ever before.

• Mortgage Lenders: The steep decline in the average price could mean that lenders face higher default risk if borrowers over‑borrowed on now‑depreciating assets. The article notes that banks are increasingly tightening credit standards and extending loan terms to mitigate risk.

Wider Economic Context

The article ties the housing market movements to the broader economic environment. In addition to rising mortgage rates, the Bank of England’s decision to hold the base rate steady at 5.25 % amid inflation concerns is highlighted as a double‑edged sword: while it helps temper the housing price surge, it also suppresses borrowing and spending. The article cites an Irish News analysis piece that argues the UK housing market’s cooling may spill over into the Irish market, especially in the Dublin region, where cross‑border buyers often consider UK listings as alternatives.

The article ends by noting that Right Move will continue to publish weekly average price updates. It invites readers to consult Right Move’s interactive “Price Trend” tool for a deeper dive into monthly movements and regional comparisons, a link that is embedded in the piece for easy access.

Take‑Away Points

1. Significant Drop – December’s average UK house price fell by £66 950, the steepest decline in a year.
2. Methodology Matters – Right Move’s median‑based calculation shows a sharper fall than transaction‑based indices.
3. Regional Heterogeneity – South East faces the biggest price pressure, while North West/ Midlands are relatively stable.
4. Drivers – Rising mortgage rates, economic uncertainty, supply constraints, and seasonal slowdown all contribute.
5. Strategic Advice – Buyers should seek undervalued listings, sellers should focus on presentation, and lenders must tighten credit standards.

The Irish News article provides a concise yet comprehensive snapshot of a market in flux. It reminds all stakeholders that the UK housing market is still in a delicate balance, with price movements reflecting a broader macro‑economic landscape that is far from settled.