Falling asking prices and tightening stock contrast with accelerating buyer demand, brokers say
A widening disconnect is emerging in the UK housing market as sellers pull back while buyer enquiries climb into December. Fresh data and broker testimony suggest that motivated buyers are moving ahead under improving borrowing conditions, while sellers delay listings in the hope of firmer prices in 2026.
Market data shows deepening seller caution
Rightmove’s latest index shows new-seller asking prices fell by 1.8% in November - the sharpest November drop since 2012. Some 34% of homes have had price reductions averaging 7%. Yet sales agreed remain 4% higher year-on-year, indicating that committed buyers are still transacting despite more cautious seller behaviour.
Halifax’s November figures show annual growth slowing to 0.7% and monthly growth stalling. Analysts have linked the softer trend to high inventory and seller hesitation ahead of the Autumn Budget. Even so, both Zoopla and Rightmove report rising buyer enquiries in early December, and viewing activity remains firm despite October’s slight dip in mortgage approvals.
First-time buyers return as movers hold back
Edward Payne of Clifton Mortgages said first-time buyer activity has shifted sharply this year. “Traditionally, around 40% of our business has been first time buyers. This was much higher in terms of enquiries in quarter one but then dropped off significantly in quarters two and three which was almost certainly down to the impact of stamp duty changes at the beginning of this year,” he said.
Momentum has begun to return. “I have seen an increase in first time buyers returning within the past month or so,” Payne said, adding that although much of the higher-value stock in his area “seems to remain unsold,” there have been “some signs of resurgence recently”.
But mover activity has slowed. “More generally, I’m finding home movers do seem to be holding off in recent weeks. Both buyers and sellers but in reality most of these people do tend to be buying and selling at the same time,” he said.
Rate-locking behaviour is also evolving. “Whilst anybody can get a decision in principle, you normally need to have a specific property in order to secure a rate,” Payne explained. “Nationwide will allow you to do this… one or two other lenders take a similar approach. But in reality this is less of a factor than it used to be as interest rates are falling.” Even so, “we are seeing more first time buyers seeking decisions in principle… compared to quarters two and three.”
Payne said activity varies markedly by price band and that many clients paused around the Budget. “Most people waited to see what happened… and now with the advent of Christmas, they are putting things off until the new year,” he said. “We expect things to get back to normal in quarter one next year.”
Buyers seize the moment while sellers wait for spring
At Oportfolio, the behavioural split is even clearer, “We’re definitely seeing the behavioural split,” said Louis Mason. “Buyers are moving faster not because the market is booming, but because they sense a narrowing opportunity window.”
Lower rates and lender competition are fuelling this urgency. “Proceedable buyers feel they have first-mover advantage right now,” he said. “Sellers, on the other hand, are behaving as if spring will magically deliver stronger prices. That mismatch is creating lots of near misses, motivated buyers with no suitable stock to pursue.”
Clients are also securing offers earlier than before. “We’re also seeing a surge in clients securing mortgage offers early, almost like they’re reserving optionality, but then struggling to find anything they actually want to commit to! It’s telling that people feel more certain about the cost of borrowing than the value of the homes they’re viewing.”
The divide is not uniform across buyer types. “The most committed buyers right now are financially resilient first-timers and downsizers who see the current market as a rare chance to negotiate properly,” Mason said. “Upsizers, especially families stretching affordability, are the most hesitant. They’re waiting for prices to either soften further or break decisively upward.”
With December enquiries rising and seller listings tightening, brokers say the start of 2026 may depend less on demand and more on whether sellers re-enter the market.
