By Anthony O. Goriainoff

Asking prices for U.K. homes fell by 1.8% on the month in December, dragged by uncertainty about government tax plans, property website Rightmove said.

The decline to 358,128 pounds, equivalent to around $479,425, leaves asking prices at the year-end down 0.6% from December 2024, according to the online real-estate platform.

Prices and activity in the second half of the year were damped by uncertainty and concerns about potential property tax increases ahead of the U.K. government's budget plans, which were outlined in late November.

The U.K. budget included a high-value council tax surcharge that is set to come into effect from April 2028 and apply to homes priced at 2 million pounds and over in England. From April 2027, tax rates on rental income will also rise by 2 percentage points.

Rightmove said it now expects a larger-than-usual post-Christmas bounce as buyers who had held off making a move before the budget announcement will likely join the traditional surge in home-moving activity following the festive period.

There are already signs of a post-budget rebound, with the number of top-end London sellers up by 24% week-on-week, Rightmove said.

While prices have declined in 2025, the number of sales has risen 3%, despite buyer demand lagging 6% on year in the second half.

At 2.6%, price growth in 2025 was strongest in northwest England. Prices were flat in London, while southwest England posted the steepest decline at 2.7%.

Looking ahead, buyer affordability is set to improve in 2026 as the choice of homes for sale continues to run at a decadehigh level, Rightmove said.

"For these reasons, Rightmove predicts stronger housing market activity, leading to modest upwards price pressure, and causing the average price of property coming to the market for sale to rise by 2% in 2026," it said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

December 15, 2025 00:30 ET (05:30 GMT)

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