A combination of sustained positive market activity and mortgage rates probably falling  has led to Rightmove’s 2025 forecast of a 4% increase in average asking prices. 

This is Rightmove’s highest prediction for increases in prices since 2021, with improving buyer affordability and the release of some pent-up demand expected to put modest upwards pressure on prices next year. 

The portal says it also expects a surge in the number of completed sales in March next year to beat the Stamp Duty deadline at the end of that month. 

However, the market is expected to remain price-sensitive. 

Rightmove insists competition to find a buyer is intense, with the average number of homes for sale per estate agent branch at its highest level for the time of year since 2014. 

It cautions that sellers will need to continue being sensible with their price expectations to attract buyers who are spoilt for choice, and still affordability-stretched, especially with a slow-down expected in the rate of wage growth, following the National Insurance increases in the budget.

Tim Bannister Rightmove’s Director of Property Science, states: “Despite the post-Budget gloom, the market is more positive than last year, with average asking prices currently 1.2% higher than in 2023, in line with our forecast of a 1% increase for 2024. 

“We now predict that we’ll see a stronger year for prices in 2025. The signs are that the market momentum that we’ve been seeing this year will continue into next year, especially if mortgage rates drop to a level that gives greater affordability to some movers who have been waiting in the wings until now. 

“However, we still expect some twists and turns next year. The speed at which mortgage rates come down next year will be key in determining activity levels for some of the market’s traditionally busiest periods, and sellers will still need to price temptingly enough to secure a buyer while the choice of homes for sale remains as high as it is right now.”

Meanwhile Rightmove’s latest market snapshot says that this month’s average new seller asking prices has dropped by 1.4% (-£5,366) to £366,592, a bigger fall than the usual, seasonal 0.8% drop seen at this time of year, likely due to pre- and post-Budget jitters.

But the portal says despite the dampening effect of the Budget, market activity remains stronger than last year as Bank Rate falls:

The number of sales being agreed is still 26% ahead of the quieter market at this time in 2023.

The number of new sellers deciding to move and coming to market is 6% ahead of the same period a year ago.