House prices experience their usual festive lull but buyer activity soars during December

The average home now going on the market has an asking price of £360,197, which is still 1.4% higher than during December 2023.

According to Rightmove, many sellers are now looking ahead to the traditional Boxing Day bounce. Last year, a record number of new sellers came to market on Boxing Day with buyer demand jumping by 273% between Christmas Day and Boxing Day in 2023.

Rightmove also predicts that new seller asking prices will rise by a further 4% overall in 2025, aided by anticipated mortgage rate falls, which will stimulate activity.

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 18 offices in West and North Yorkshire, said: “A dip in prices in December is largely to be expected but importantly, the market is in a healthy place. We leave 2024 with plenty of properties under offer and lots of opportunities for buyers to buy – a relative luxury post covid.

“Looking ahead to 2025, it’s likely that we’ll continue to see price growth against a foundation of falling interest rates. The cuts might not be as fast as some would hope, nevertheless there is reasonable certainty on the sense of direction, and certainty is critical to the market. We have traded through boom and bust and it’s clear time and again that individuals and families like to make decisions on a major purchase against a stable background. We have a new government, and I’m sure homeowners and buyers will soon come to terms with their game plan.

“I suspect the next 12 months will deliver a divergence of performance across the various price sectors. The last four months or so have already been more challenging in the upper sectors as the business world takes stock of the world after Rachel Reeves’ first budget – especially the taxation and pension changes. But these are less likely to affect those buying in the core mid-market or indeed first-time buyers who will start to reap the rewards of cheaper borrowing.”

Tim Bannister, Rightmove’s director of property science, commented: “New sellers in December have to work particularly hard to capture the attention of Xmas-party and festivity-distracted buyers, and the 1.7% average monthly fall is a fitting gift for those who are still buying homes rather than presents. Despite this monthly drop, prices have risen by 1.4% compared with this time in 2023, broadly in line with our prediction of a 1% rise in prices this year. We are now looking ahead to the traditional Rightmove Boxing Day bounce in home-mover activity, which has increasingly become a key date in the housing market calendar. Each year, our real-time data can pinpoint the exact moment that the turkey is finished, family games run out of steam, mobile devices are picked up, and prospective movers flood onto Rightmove and get their 2025 move started. If this year is anything like recent years, those early birds who get their search started the day after the festivities are over are likely to be rewarded with plenty of fresh property choice to consider.

“Looking at our data and the UK’s underlying housing needs, there are lots of reasons to be positive about next year. However, as we’ve seen several times this year, the market is sensitive to unexpected events and the direction of travel can change. The stamp duty changes are a cloud over the market at the moment, with some groups much more impacted than others, and therefore keen to avoid the additional charges. After the important first three months of the year in 2025, a lot depends on how quickly normal activity is resumed with higher stamp duty in England. A Bank Rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence.”

Dacre, Son & Hartley was founded more than 200 years ago and is Yorkshire’s largest independent estate agent with 18 offices across North and West Yorkshire.