As 2025 draws to a close, many potential homebuyers are weighing the costs of moving in the new year.

Changes announced in the budget, especially for owners of properties worth more than £2m, have caused a significant degree of uncertainty for some.

Figures recently released by property site Rightmove (RMV.L) show that post-budget jitters have already had an impact on market activity, particularly in relation to house prices.

Asking prices for newly listed properties slumped 1.8% in December, or £6,695, bringing the average down to £358,138.

Adding to the gloom, new enquiries from prospective home-buyers fell to their lowest level in roughly two years in November, according to the Royal Institution of Chartered Surveyors (RICS).

The downturn may be short-lived, however, as Rightmove (RMV.L) added that it predicted a swift rebound over Christmas and into the new year. New-seller property prices are expected to rise by at least 2% in 2026, its forecast showed.

For now, all eyes are on the Bank of England (BoE), which will decide whether to hold or cut interest rates on Thursday. Predictions that the BoE will take the latter option intensified after news broke that economic growth unexpectedly fell in October.

Referring to the surge in property-related Google searches that typically occurs on 26 December, Matt Smith, Rightmove’s mortgage expert, said: “We’re expecting to end the year with a bank rate cut, which would be good for confidence heading into the Rightmove Boxing Day Bounce.”

A cut to rates would almost certainly provide a boost to the property market. For example, it could lead to a broader selection of mortgages on the market, helping homebuyers stretch their funds that bit further. But even that may not be enough of an incentive for those facing higher tax bills and steep moving costs.

We’d like to hear from you. Is a new property purchase on the cards if interest rates drop? Vote in our poll below.

Yahoo Finance UK’s poll of the week lets you vote and indicate your strength of feeling on one of the week’s hot topics. After the poll closes, we’ll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo Finance UK readers.

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