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    UK Rightmove house price index decreases to -0.6% from -0.5%

    by VT Markets
    /
    Dec 15, 2025
    In December, the Rightmove House Price Index in the UK dropped by 0.6% compared to last year. This decline is slightly worse than the previous decline of 0.5%. This trend may indicate difficulties in the housing market, affecting buyer sentiment and affordability. As the housing market evolves, experts are examining its impact on the wider economy and possible shifts in real estate. Watching these economic indicators can provide valuable insights, helping to make informed choices about housing market opportunities.

    UK Economy Slowing

    The ongoing drop in house prices, now at -0.6%, suggests that the UK economy is slowing down as we approach 2026. This weak data increases the likelihood that the Bank of England might lower interest rates soon. With inflation in November 2025 already falling to 2.8%, this report gives the central bank another reason to consider a shift in policy. In the equity derivatives market, we can expect more pressure on UK housebuilder stocks and banks that offer mortgages. Traders might consider buying put options on the FTSE 250 index, which reacts to the domestic economy, as a way to protect against a potential downturn during the holiday season. This stagnant housing market data comes after weak retail sales figures, indicating fragile consumer confidence. This report negatively affects the British Pound, highlighting underlying economic weaknesses. Traders may increase their short positions on GBP/USD, expecting that anticipated UK rate cuts will put pressure on the currency. Historically, a struggling housing market, like the one seen in 2023, often leads to the Pound performing poorly.

    Anticipating Rate Cuts

    For those trading interest rate futures, this data strengthens the case for a rate cut in the first quarter of 2026. We expect increased interest in derivatives like SONIA futures, which benefit from falling rates. This shift allows traders to align with the growing belief that the Bank of England will soon ease monetary policy. Create your live VT Markets account and start trading now.

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