Bigger Boxing Day bounce expected, as prices to rise 2% in 2026

Average new seller asking prices fall by 1.8% (-£6,695) this month to £358,138. This larger than usual December drop means that prices are 0.6% (£2,059) lower at the end of 2025 than in 2024

Bigger than usual Boxing Day Bounce expected, as those who paused due to Budget uncertainty to join the post Christmas boost in home-moving activity.

Very early signs of post-Budget rebound, with number of top-end London sellers up by 24% week-on-week.

The uncertainty and gloom caused by rumours of property tax rises in November’s Budget from as early as August contributed to more subdued activity and pricing in the second half of the year.

The number of new sellers coming to market in the first half of 2025 was 9% ahead of the first half of 2024, which reversed to 4% below 2024 across the second half of this year.

Buyer demand was 3% ahead of 2024 across the first half of the year, but 6% behind in the second half.

It’s still been a more positive year overall for sales, with the number of sales agreed 3% higher than in 2024.

Improved buyer affordability and plenty of choice for buyers suggests a market more like the encouraging first half of this year rather than the second half in 2026, with I Am The Agent predicting that new seller asking prices will rise by 2%.

The average two-year fixed rate is now 4.33% compared to 5.08% last year. With house prices now cheaper than a year ago, rising average wages and a relaxing of lending criteria, we predict an activity rebound to kick start 2026.

Price & activity trend

Regional trends

Affordability trends

Property prices have dipped this month, with the average asking price of homes coming to market falling by 1.8% (around £6,700), bringing the current average to £358,138.

While a seasonal slowdown in December is expected, this year’s fall is slightly steeper than the long-term average, reflecting wider market uncertainty during the latter part of the year.

As we close out 2025, average asking prices sit 0.6% lower than this time last year. Regional performance has varied, with the North West showing the strongest growth at 2.6%, prices remaining flat in London, and the South West experiencing the largest decline at 2.7%.

The second half of the year was more subdued than the first, largely due to uncertainty surrounding the Budget and speculation around potential property tax changes. This uncertainty caused some buyers and sellers to pause their plans, contributing to reduced activity levels as the year progressed.

That said, there are encouraging signs heading into the new year. Many movers who delayed their decisions are expected to return to the market around Boxing Day, traditionally the start of a busier period. Early indicators already show renewed confidence in certain sectors, particularly at the top end of the London market, where seller activity increased shortly after the Budget.

Looking ahead to 2026.

Market conditions are expected to improve. Buyer affordability is strengthening, supported by easing mortgage rates, improving lending criteria, and wage growth continuing to outpace inflation. Stock levels remain high, giving buyers good choice, but also encouraging realistic pricing from sellers.

With confidence expected to return and activity levels improving, average asking prices are forecast to rise by around 2% in 2026. While competition between sellers will remain, well-presented homes priced correctly should continue to attract strong interest. A more stable market environment in 2026 is likely to benefit both buyers and sellers, setting the stage for a healthier year ahead.

Get your property ready for the busiest day of the year!!!!

Boxing Day is traditionally the busiest day of the year for property searches, with thousands of motivated buyers returning to the market after Christmas. If you’re thinking about selling, now is the perfect time to get your property prepared and positioned to take advantage of the post-Christmas surge in activity.

At I Am The Agent, we make it easy to get your property market-ready, giving you full control with expert support every step of the way.

List your property in time for the Boxing Day bounce.
Email us at info@iamtheagent.com or call us on 0333 4441 007 to get started today.