Homeowners are being forced to accept lower offers on house purchases amid uncertainty surrounding mortgage rates in the wake of the Budget.

Houses were selling for an average of 3.6pc below their asking price in recent weeks, equal to a discount of around £17,600, according to Zoopla.

It marks a jump from the summer, when house sellers were agreeing deals at 3.2pc below asking prices. In June, the average discount stood at around £16,600.

Zoopla said the wider gap between asking and selling prices came as buyers had become "more price-sensitive" over the past few weeks. It said the Budget had made prospective homeowners more wary of agreeing a deal amid uncertainty over the economy and jobs market.

Zoopla also highlighted growing concerns over mortgage rates among buyers. Earlier this month, the average interest rate on a five-year fixed mortgage rose by the most since August 2023.

Economists have blamed Rachel Reeves's maiden Budget and the US election for pushing up borrowing costs.

Last week, UK 10-year borrowing costs hit their highest levels in a year as investors fretted about how Ms Reeves will fund her spending plans.

Meanwhile, inflation has surged to an eight-month high with analysts predicting that further price rises are to come. It raises the prospect that the Bank of England may be forced to keep interest rates higher for longer.

Zoopla suggested the signs of increased caution among buyers would keep house price growth subdued over the next year. House prices were up by around 1.9pc in the 12 months to November, with the average price at £267,500.

House prices are forecast to rise around 2.5pc in 2025, with 1.15m house sales expected to be completed over the year. In 2024, 1.1m housing sales were completed.

Over the coming months, however, activity is expected to surge as homeowners and buyers race to complete deals before stamp duty increases come into force from April.

In her Budget, Rachel Reeves increased the surplus rate of stamp duty paid by second home owners from 3pc to 5pc. The basic threshold at which most home movers will pay 2pc tax will be reduced from £250,000 to £125,000 from April, while the threshold for first-time buyers is also being reduced from £425,000 to £300,000.

Zoopla said over the last four weeks, the number of sales was up 23pc compared to last year. Around 283,000 sales have been agreed and are expected to complete in the first half of 2025. This marks the largest sales pipeline in four years.