The latest Rightmove House Price Index survey backed up recent evidence that the UK housing market is softening showing that house prices fell 1.1% in November, compared to a 0.9% rise the month before, taking the average asking price to £366,999.
Year-on-year, house prices grew by 7.2%, compared to annual growth of 7.8% in October.
November traditionally sees house sellers price more competitively as they look to offload properties ahead of Christmas.
Rightmove said this year's fall was in line with the average November declines seen during the pre-pandemic years of 2015 to 2019.
Victoria Scholar, head of investment, interactive investor said: “This morning’s figures on asking prices from property website Rightmove confirm other recent data on the UK housing market to suggest that demand is cooling on the back of rising mortgage rates and the chaos in the market in the aftermath of the mini-budget which sent borrowing rates through the roof.”
The news sent shares in housebuilders lower bucking the firmer market trend with Persimmon plc (down 2.2%), Barratt Developments PLC (LSE:BDEV) (down 2.5%), Taylor Wimpey PLC (LSE:TW.) (down 1.9%) while Rightmove PLC (LSE:RMV) itself dropped 0.7%.