UK House Prices Slide to Two-Year Lows as Lenders Spark 2025 Mortgage Rate-Cut Battle — November Market Shifts Explained

The UK housing market is showing fresh signs of cooling as average asking prices drop and major lenders launch rate-cut strategies ahead of the forthcoming Budget and possible rate moves.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

What Is Driving UK House Price Movement
Average new seller asking prices fell by 1.8 per cent month-on-month in November to £364,833, marking the largest November drop since 2012.
Year-on-year, asking prices are down around 0.5 per cent, signalling a broader flat or slightly declining trend.
More stock is coming to market, and around one-third of sellers have reduced asking prices, the highest share in nearly two years.
At the upper end of the market, sales volumes have weakened, with high-value properties seeing the sharpest slowdown.
Uncertainty around potential property-tax measures in the forthcoming Budget is contributing to buyer hesitation.

Bank of England and Swap Rates
The Bank of England Base Rate remains at 4.00 per cent as of November 2025.
Its latest statements indicate that if inflation continues easing as projected, further gradual rate reductions may follow.
Falling SONIA swap rates — the financial instruments that strongly influence fixed mortgage pricing — are helping lenders plan competitive rate cuts for early 2025.

Lenders’ Mortgage Rate-Cut Battle Begins
Several major lenders are already trimming fixed-rate deals in anticipation of the Budget and expected Base Rate reductions.
Some banks have reduced selected five-year fixed products by roughly 0.3 percentage points, with new pricing around the mid-4 per cent range.
Other high-street lenders have followed with cuts to two- and five-year fixed products as competition increases.
Industry analysts describe the developing environment as the early stages of a 2025 “price-cut battle”, driven by improved market funding costs and a larger-than-usual winter slowdown.

What This Could Mean for First-Time Buyers / Remortgagers / Investors
For first-time buyers the combination of falling asking prices and broader choice could improve negotiating flexibility, though affordability constraints remain significant.
For remortgagers the downward trend in fixed mortgage pricing may support planning, particularly for those with deals expiring in the next six to nine months.
For buy-to-let landlords weaker upper-end transaction activity and pockets of rental oversupply highlight the need to consider yield, taxation and potential regulatory developments.

Key Numbers
• Average new seller asking price (Nov 2025): £364,833 (-1.8% m/m, -0.5% y/y)
• Bank of England Base Rate: 4.00% (as at Nov 2025)
• Share of listings with price reductions: around one-third

As of 19 November 2025 London

If you’d like to understand what today’s moves could mean for you, speak to a qualified mortgage adviser who can explain your options and timings based on your specific circumstances.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

FAQs

1. Why are UK house asking prices falling in November 2025?
   Asking prices are falling due to an early seasonal slowdown, high levels of available stock, and buyer caution ahead of possible property-tax changes.

2. Are mortgage rates becoming cheaper?
   Yes. Lenders are beginning to cut fixed-rate deals as funding costs ease and expectations grow for Base Rate reductions.

3. Does the fall in asking prices mean mortgage valuations will be lower too?
   Not automatically, but valuers may become more cautious in areas where prices or demand are weakening.

4. Should remortgagers rush to lock in a deal now?
   The decision depends on personal circumstances, the time remaining on the current deal, and overall affordability rather than solely market timing.

5. How might the Budget affect the housing market?
   Expected property-tax changes — particularly affecting higher-value homes — are creating uncertainty and slowing activity at the upper end of the market.