THE PRICE of a new home on the market in November fell by over £6,000, the largest drop during the month in five years, as sellers look to slash the prices of their house in order to secure a sale.

According to the latest report from property portal Rightmove, the average cost of a house in November was £362k, down 1.7 per cent on last month's reading.

A fall in house prices is expected around the Christmas period, however, this month's larger than expected drop means sellers are cutting their prices further to up their chances of a sale amid a period of volatility for the UK property market.

Tim Bannister, director of property science at Rightmove said: "Asking prices have eased from the frothy heights seen during the pandemic markets, where many sales went to best and final bids."

Consistent rate rises from the Bank of England that have led to higher borrowing rates have been blamed for a slowdown in the housing market over the last year.

However, the central bank's decision to keep interest rates at a record 15 year high of 5.25 per cent, after months of hikes, has provided some relief for the sector.

(c) 2023 City A.M., source Newspaper