Home sellers are cutting asking prices at the fastest pace in 15 years, as rising mortgage costs and growing competition force vendors to reassess their expectations.
More than 3,000 properties had their asking prices reduced every day during September, according to Rightmove figures shared with the BBC.
The average reduction was almost 7%, equivalent to around £21,000 on a typically priced home.
Meanwhile, 34% of listed properties have undergone a price reduction, close to the recent peak of 36% recorded in September 2023.
The figures come as buyer enquiries fall, sales agreed decline and the number of homes for sale reaches a 12-year seasonal high.
- Asking price reductions hit a 15-year high: More than 3,000 properties had their asking prices cut daily during September, with average reductions of almost 7% (around £21,000). Around 34% of listed homes have had a price reduction.
- Overpricing significantly delays sales: Properties requiring a price reduction took an average of 119 days to find a buyer, compared with just 39 days for homes sold without a reduction, highlighting the importance of realistic pricing from the outset.
- Rising mortgage costs squeeze buyers: The average two-year fixed mortgage rate has climbed to 5.55%, up from 4.25% before the Iran war began, adding around £250 a month to a typical new mortgage and putting further pressure on affordability.
- Buyer demand weakens as competition increases: Sales agreed are down 8% year-on-year and buyer enquiries have fallen 9%, while new listings have risen 3%. The number of homes for sale has reached a 12-year seasonal high, giving buyers greater choice and negotiating power.
- Regional markets remain under pressure: Despite average UK asking prices rising 1% in October to £371,015, they remain 0.1% lower than a year ago. London prices rose 2.5% in October but remain 1.7% down year-on-year, with 38% of properties experiencing price reductions. Further uncertainty surrounding the forthcoming Budget could also delay buyer decisions.
Overpriced homes take three times longer to find buyers
Rightmove’s research highlights the consequences of launching properties at unrealistic asking prices.
Homes requiring a price reduction took an average of 119 days to find a buyer.
By contrast, properties marketed without a reduction secured a purchaser in just 39 days.
That means reduced properties spent more than three times as long searching for a buyer.
Colleen Babcock, Rightmove’s property expert, warned that reductions can also raise questions among prospective purchasers.
“Once a home has been on the market for a while and then has a price reduction, some buyers start asking questions, even when there is nothing wrong with the property,” she said.
“In a market with so much choice, first impressions matter.”
Mortgage costs add £250 a month
The pressure on sellers comes as mortgage rates continue to rise.
Rightmove’s latest House Price Index shows the average two-year fixed rate has reached 5.55%, up from 5.29% last month.
Before the Iran war began in February, the equivalent rate stood at 4.25%.
According to Rightmove, the increase has added around £250 a month to the cost of a typical new mortgage.
The impact is now spreading to some of Britain’s cheapest housing markets.
New sellers in four of the five lowest-priced regions reduced their asking prices in October.
The North East recorded the largest monthly fall at 2%, followed by Scotland at 1.9%.
Prices also declined in the North West (-0.6%) and Wales (-0.3%). Yorkshire and the Humber recorded a modest 0.3% increase.
Despite these regional falls, average asking prices across Britain rose 1% in October to £371,015.
However, they remain 0.1% below the same month last year.
Buyer demand weakens as stock builds
Across Britain, sales agreed are running 8% below the same period last year.
Buyer enquiries have also fallen 9%, while new listings have increased 3%.
Consequently, the number of properties for sale has reached its highest level for this time of year since 2014.
The growing choice is giving purchasers greater negotiating power and increasing competition between sellers.
London illustrates the uneven conditions facing agents.
Asking prices in the capital rose 2.5% in October, following a 6% decline across July and August.
However, prices remain 1.7% below October 2025.
Some 38% of London properties have undergone asking price reductions. Homes take an average of 78 days to find a buyer, while just 42% of listings secure one.
Agents face growing pricing challenge
Babcock said: “The rapid rise in mortgage rates is really beginning to hit buyers’ budgets.”
She added: “This is a stark reminder of how price-sensitive the market is, and the message from agents, backed up by our data, remains the same – that competitive pricing from day one of marketing is critical to capitalise on initial buyer interest.”
The forthcoming Budget could add further uncertainty, particularly if buyers delay decisions while assessing potential changes to their finances.
For agents, the latest figures underline the risks of overpricing in a market where purchasers have more choice and borrowing costs remain elevated.
…why is this happening?
- Rising mortgage rates are putting pressure on house prices: The average two-year fixed mortgage rate has increased to 5.55%, up from 4.25% before the Iran war began, adding around £250 a month to a typical new mortgage. This is forcing sellers in previously resilient, lower-priced regions to reduce their expectations.
- Cheaper regions record price falls: Asking prices fell by 2% in the North East, 1.9% in Scotland, 0.6% in the North West and 0.3% in Wales. Yorkshire and the Humber was the exception, rising 0.3%. UK asking prices rose 1% in October to £371,015 but remain 0.1% below a year ago.
- London sees a price rebound but remains subdued: Asking prices rose 2.5% in October following a 6% fall over July and August. However, prices remain 1.7% lower year-on-year, 38% of properties have reduced their asking prices, and only 42% of listings secure a buyer.
- Buyer demand weakens as housing supply grows: Sales agreed are down 8% year-on-year and buyer enquiries have fallen 9%, while new listings have increased 3%. The number of homes for sale is at its highest seasonal level since 2014, creating greater competition and giving buyers more choice.
- Budget uncertainty adds to market caution: Buyers and sellers are awaiting potential changes affecting their finances, while some first-time buyers may delay decisions pending details of the proposed Your First Home scheme. With affordability under pressure, competitive asking prices and local estate-agent advice remain crucial to securing a sale.
Mortgage rate shock hits previously resilient housing markets
Rising mortgage rates are starting to hit house prices in some of Britain’s cheapest regions. Sellers are cutting asking prices as buyers struggle with higher borrowing costs.
Rightmove’s latest House Price Index shows that average asking prices rose 1% (£3,575) this month to £371,015.
However, prices remain 0.1% below a year ago. Higher mortgage costs are also putting increasing pressure on buyers’ budgets.
The average two-year fixed mortgage rate has climbed to 5.55%, up from 5.29% last month. It stood at 4.25% before the war in Iran began in February.
According to Rightmove, the increase has added around £250 a month to the cost of a typical new mortgage.
The impact is now becoming more apparent in regions that had previously resisted downward pressure on prices.
New sellers in four of Britain’s five cheapest regions have reduced their asking prices this month.
The North East recorded the largest fall at 2%, followed by Scotland at 1.9%. Asking prices also declined in the North West (-0.6%) and Wales (-0.3%).
Yorkshire and the Humber was the exception, recording a modest 0.3% increase.
Colleen Babcock, Rightmove’s property expert, said: “The rapid rise in mortgage rates is really beginning to hit buyers’ budgets. We’re now seeing mortgage rate rises feed through to seller pricing in many of the cheaper parts of Great Britain, where prices had been more resilient this year.
“It’s an early sign that higher mortgage costs are putting pressure on affordability even in markets with lower property prices, affecting the areas and types of property that buyers can afford.”
She added: “This is a stark reminder of how price-sensitive the market is, and the message from agents, backed up by our data, remains the same – that competitive pricing from day one of marketing is critical to capitalise on initial buyer interest.”
London prices rebound – but sales remain sluggish
London recorded Britain’s largest monthly asking price increase, rising 2.5% in October.
However, the increase follows a weak summer, when prices fell 6% across July and August.
Despite the latest rebound, asking prices in the capital remain 1.7% below October 2025.
Inner London recorded a 3.9% monthly increase, helping lift the overall London figure.
Rightmove suggests the rise partly reflects seasonal activity. Some sellers delayed their listings until autumn.
However, other indicators point to continued weakness in the capital’s housing market.
Some 38% of London properties have had their asking prices reduced. Homes also take an average of 78 days to find a buyer.
Just 42% of listed properties successfully secure a buyer.
The figures suggest October’s price increase reflects stronger seller expectations rather than a wider market recovery.
Sales agreed fall as buyer enquiries decline
Across Britain, the number of sales agreed is 8% below the same period last year.
Buyer enquiries have also fallen. The number of prospective purchasers contacting agents is down 9% year-on-year.
Meanwhile, new listings have increased by 3%.
The number of homes for sale is now at its highest level for this time of year since 2014. This is adding to competition between sellers.
Despite the slowdown, Rightmove says sales activity remains broadly in line with the year-to-date trend.
Buyers are still proceeding where properties are priced competitively. However, higher borrowing costs continue to restrict demand.
Budget uncertainty adds to market pressures
The forthcoming Budget is creating further uncertainty for buyers and sellers.
Financial markets will be watching for announcements affecting inflation, government borrowing and interest rates.
Some first-time buyers may also delay decisions while awaiting details of the government’s proposed Your First Home scheme.
The scheme aims to help buyers purchase new-build properties.
Other households will be assessing how Budget measures could affect their finances.
Babcock said: “Higher mortgage rates are putting pressure on affordability across Great Britain, but sellers appear to be responding in different ways. Some have room to lower their expectations, while others need to hold firm on price to make their next move add up, even if that means waiting longer for a buyer.”
She added: “In such a price-sensitive market, the guidance and expertise of a local agent are paramount. The forthcoming Budget adds some uncertainty too, with financial markets hoping that will improve the outlook for interest rates, while potential home-movers will be waiting to see how they are directly or indirectly affected.”
