Downbeat sentiments among sellers in Britain's housing market are unlikely to be long-lasting, according to analysts at Citi, who expect the drop will be short-lived, driven mainly by pre-budget concerns.
Citi reckons the data reflects a moment of seller pessimism rather than a structural shift.
In a note, the bank's analysts highlighted a weaker-than-usual seasonal drop in UK asking house prices, citing data from Rightmove that showed a 1.8% month-on-month fall in November, the largest November decline since 2012 and sharper than the ten-year average seasonal fall of around 1.1%.
Citi pointed to several factors behind the drop, including rising supply and early seasonal weakness in demand ahead of Christmas.
Around 34% of sellers have reduced asking prices, with average cuts of around 7%, as competitive pricing returns to the market.
Speculation about property tax changes, particularly affecting higher-value homes, may have contributed to seller caution. But, Citi added that homes priced under £500,000 appear to be less affected.