The average property price in the West Midlands has fallen by more than £4,000 over the past month, according to the latest data from property portal Rightmove.
December Dip and Regional Variations
Rightmove's figures show that across Britain, the typical asking price in December stands at £358,138. This represents a drop of 1.8%, or £6,695, compared to November, and is 0.6% (£2,059) lower than in late 2024.
In the West Midlands specifically, the average property price has declined by 1.5% month-on-month, bringing it to £287,463. Despite the recent drop, prices in the region are still 1.3% higher than they were a year ago, and homes are taking approximately 67 days to find a buyer.
The data reveals a mixed picture across the country. Year-on-year growth was strongest in the North West of England at 2.6%, while London saw flat growth of 0.0%. The steepest declines were recorded in the South West and South East, both at minus 2.7%.
The Boxing Day Bounce and Budget Uncertainty
Rightmove noted that while price dips in December are typical, this year's reduction has been more pronounced. However, the portal anticipates a larger-than-usual surge in market activity after Christmas, known as the "Boxing Day bounce".
This expected rebound is partly due to prospective buyers who paused their moving plans amid uncertainty surrounding the Autumn Budget. A survey of over 10,000 potential home movers found that nearly one-fifth were waiting for the Budget outcome before proceeding.
Colleen Babcock, a property expert at Rightmove, explained: "In the latter half of 2025, uncertainty stemming from whispers about property tax alterations began to circulate. This influenced pricing and activity, as sellers attempted to lure apprehensive buyers. The market is set to gain from the customary surge in home-moving activity post-Boxing Day."
Forecast for a Stronger 2026
Looking ahead, Rightmove forecasts that increased activity could trigger a 2% rise in average asking prices during 2026. This optimism is supported by declining mortgage rates and more stable economic conditions expected in the new year.
Matt Smith, a mortgage specialist at Rightmove, said: "Home movers will be entering 2026 looking at cheaper average mortgage rates than they were at the beginning of 2025, helping affordability." He added that lenders have been adjusting their criteria, potentially allowing buyers to borrow more.
Industry professionals echo this cautious optimism. Phillip Sandbach, managing director at John German Estate Agents in the Midlands, remarked: "With an anticipated drop in interest rates, we are expecting a very busy start to 2026."
Claire Reynolds, UK head of sales at Strutt & Parker, observed that clarity following the Budget has helped people become more decisive, pointing to a stronger market heading into 2026.
Ms Babcock concluded by advising sellers that in a market where buyer choice remains high, they must price competitively and present their homes well to attract attention, paving the way for a more stable and active year ahead.
