UK homeowners are reducing asking prices at their fastest rate in 15 years as higher mortgage costs and increased competition make it harder to attract buyers.
Figures from Rightmove, shared with the BBC, show that more than 3,000 properties had their asking prices lowered each day in September. The average reduction was almost 7%, equivalent to around £21,000 for a typically priced home.
Approximately 34% of properties currently listed for sale have had a price reduction, approaching the recent high of 36% recorded in September 2023.
These changes come as buyer enquiries and agreed sales decline, while the number of homes available for purchase reaches a seasonal high not seen in 12 years.
Overpriced Properties Take Longer to Sell
Rightmove’s findings highlight the risks of setting an unrealistic asking price when a property first enters the market.
Homes that required a price reduction took an average of 119 days to find a buyer. In comparison, properties that sold without a reduction attracted a purchaser in just 39 days.
This means homes requiring price adjustments took more than three times as long to sell.
Rightmove property expert Colleen Babcock warned that a price reduction can prompt potential buyers to question why a property has remained unsold.
In a market with plenty of properties to choose from, making a strong first impression is particularly important. Setting a competitive price from the outset can help sellers attract serious interest before their listing loses momentum.
Rising Mortgage Rates Add to Buyers’ Costs
Increasing mortgage rates are putting further pressure on the housing market.
Rightmove’s latest House Price Index reported that the average two-year fixed mortgage rate had risen to 5.55%, up from 5.29% the previous month. Before the Iran war began in February, the comparable rate stood at 4.25%.
According to Rightmove, this increase has added approximately £250 a month to the cost of a typical new mortgage, placing additional strain on buyers’ budgets.
The effects are also being felt in some of Britain’s most affordable housing markets. In October, new sellers in four of the five lowest-priced regions reduced their asking prices.
The North East recorded the largest monthly decline at 2%, followed by Scotland at 1.9%. Prices also fell in the North West by 0.6% and Wales by 0.3%. Yorkshire and the Humber was the exception, recording a modest 0.3% increase.
Despite these regional falls, average asking prices across Britain rose by 1% in October to £371,015. However, this figure remained 0.1% lower than in October 2025.
Buyer Demand Weakens as Property Listings Increase
Market activity has softened across Britain, with agreed sales running 8% below the level recorded during the same period last year.
Buyer enquiries have fallen by 9%, while the number of new property listings has increased by 3%. This combination has pushed available housing stock to its highest seasonal level since 2014.
With more properties to consider, buyers have greater negotiating power. Sellers must therefore compete more actively to attract attention, particularly when mortgage affordability remains a concern.
London presents a slightly different picture. Asking prices in the capital increased by 2.5% in October following a 6% decline during July and August. Despite this monthly recovery, prices remained 1.7% below October 2025.
The market remains challenging, with 38% of London properties having undergone asking price reductions. Homes take an average of 78 days to find a buyer, and only 42% of listings secure one.
Estate Agents Face Greater Pressure to Price Correctly
Colleen Babcock said the rapid increase in mortgage rates was beginning to have a significant effect on buyers’ budgets. The latest figures reinforce how sensitive the market has become to affordability and pricing.
For estate agents, the message is clear: properties need to be priced competitively from the beginning to make the most of initial buyer interest.
Launching a home at an inflated price may discourage potential purchasers and lead to reductions later, potentially extending the time it takes to secure a sale.
The upcoming Budget could introduce further uncertainty, particularly if buyers postpone decisions while considering possible changes to their finances.
With borrowing costs elevated, demand weakening and housing stock increasing, sellers may need to adjust their expectations to remain competitive. For agents and homeowners alike, realistic pricing is becoming increasingly important in securing a successful sale.
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