Property market rebounds after Budget gloom, Boxing Day surge expected

UK property markets are visibly lifting after a Budget-driven lull, with activity expected to accelerate through Boxing Day and into January as buyers resume plans and sellers move to the market. Agents report a wave of listings and stronger viewings as people turn their attention to next-year house moves, a shift that follows a 24 per cent week-on-week surge in the number of top-end London homes being listed, according to Rightmove.

Rightmove's latest house price index shows new seller asking prices fell 1.8 per cent in the last month to £358,138, reflecting December's usual seasonal slowdown and lingering Budget uncertainty. Prices at the end of 2025 were 0.6 per cent, or about £2,059, lower than 2024. In the 19 days since the Budget, market activity has spiked, with sellers listing, buyers viewing and offers moving forward as some people who paused due to tax fears resume their search.

A survey of 1,700 active property seekers conducted by On The Market found 50 per cent said the Budget ended up having no impact on their moving plans, while 6 per cent planned to accelerate them. Only 12 per cent had delayed and 3 per cent canceled, with the rest unsure. The data point to a subset of buyers and renters who paused during Budget uncertainty returning to the market as new listings are held back for sale around Boxing Day.

Market sentiment across the country has warmed since the Budget, even as regional variations persist. Phillip Sandbach, managing director at John German Estate Agents in the Midlands, said: “Following the Budget, which in the end didn’t significantly impact the majority of the property market, we have seen a marked uptick in activity and a surge in exchanges too.” Rightmove noted that many buyers who paused their plans are expected to re-engage as Boxing Day launches gather pace and more listings go live after Christmas Day. It anticipates a bigger-than-usual Boxing Day bounce as families browse homes during the holiday lull and beyond.

Barney Coles, director at Artistry Property, also expects January to be busy. He said: “Since the Budget, we’ve received a number of instructions from clients who’d put plans on hold, and we’ve also noticed an uptick in inquiries and viewings from people interested in the kind of unique and exclusive homes we specialise in. With pent-up demand adding to the normal activity after Christmas, we’re gearing up for a busy January and a solid 2026.” The trend is helped by falling mortgage rates and expectations of accommodative policy.

Mortgage market dynamics remain a key driver of sentiment. An anticipated Bank of England rate cut from 4 per cent to 3.75 per cent when the central bank meets on 18 December would add to the positive mood, analysts say. Lower rates could boost borrowing power for first-time buyers and homes up the ladder, supporting the pickup in transactions even if price gains stay modest.

The higher-end market appears to be among the first to benefit from the shift. Dominic Agace, chief executive of Winkworth, told This is Money that “the market ground to a halt in November, but it feels freer now. Quite a few things have been brought to market since, and they’ve performed solidly well. There are lots being prepared for January, and lots looking to launch on Boxing Day. Particularly on more expensive homes, where sellers were previously holding off, they are being brought to the market and getting interest.”

What will happen to house prices? Analysts say a bump in transactions is likely, but they do not expect rapid price rises. Rightmove forecasts new seller asking prices will rise about 2 per cent over the course of 2025. Yet with the market still facing more listings than buyers, sellers need to price realistically. Jordan Halstead, CEO at Jordan & Halstead estate agents in Chester, said: “Properly-priced homes are still selling; the ones that have struggled have been the over-optimistic instructions. Buyers will pay fair value; they just won’t chase fantasy prices.”

There is also regional nuance on pricing. Rightmove’s data show London prices fell 1.2 per cent in the last month but were flat versus December 2024, while the North East posted a 5.1 per cent monthly decline and was down 0.8 per cent on the year. Taken together, the data point to a market that is reviving in activity but not delivering broad-based price gains, at least in the near term.

For buyers and sellers looking ahead, the trajectory is likely to hinge on two factors: how quickly mortgage costs edge lower and how quickly and how much inventory returns to the market. For those needing a mortgage because a fixed-rate deal ends or because they are buying a home, industry observers urge prompt action. Borrowers should compare rates, speak to a broker and be prepared to act. Homeowners can lock in a new deal six to nine months in advance, often with no obligation to take it. Some deals allow fees to be added to the loan and charged only when the loan is drawn, though this means paying interest on the fee through the loan’s term. Those buying a home should secure rates early to know monthly payments and avoid overstretching if prices ease. Buy-to-let borrowers face steeper costs on interest-only mortgages, making timely remortgaging essential. This is Money partners with L&C to offer fee-free mortgage guidance and rate comparison tools for those navigating today’s market.

In sum, real estate professionals expect a brighter start to 2026 than the abrupt Budget-to-winter lull suggested, driven by a combination of returning buyers, new listings and a more favorable financing backdrop. While the pace of price growth is unlikely to accelerate sharply, a steadier rhythm of transactions could set the tone for the year ahead, particularly in the higher-value segments where pent-up demand remains strongest.