The average price tag on a UK home tumbled by nearly £7,000 in December, according to Rightmove. Across Britain, the average asking price for a home coming on the market fell by 1.9% or $6,966 in cash terms this month, reaching £355,177, the property said. In November, the average asking price was £362,143.

Rightmove said that prices tend to fall in December, as Christmas approaches. But this month’s drop is bigger than the past 20-year average of 1.5%, as sellers look to price attractively to secure a deal. The fall is partly driven by more new sellers looking to price below the competition now that the pendulum has swung towards a buyers’ market, Rightmove said.

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Mortgage lending is set to slump next year, as the number of arrears and repossessions increases, according to a trade association representing the UK banking and finance industry. The outlook for 2024 is one of continuing challenges in the mortgage market, but the main pressures on affordability look to be peaking now, UK Finance said. It added that, while it will take some time for the pressure on household finances to recede, it expects the situation to improve in 2025.

Giving its predictions for next year, UK Finance said it expects lending for house purchases to fall to GBP120 billion next year, from GBP130 billion in 2023. External remortgaging activity is expected to fall to GBP60 billion, from GBP65 billion this year.