The common price of property coming to the marketplace for sale has dropped by 1.2% in July to £373,709, the most recent Rightmove home price index reveals.
The newest information exhibits that London is the most important regional driver of latest vendor asking price falls this month, with a decline of 1.5%, led by interior London with a 2.1% lower.
It additionally discovered that the variety of gross sales being agreed is 5% greater than at the moment final 12 months whereas the variety of potential future patrons contacting property brokers about houses on the market is 6% greater than final 12 months.
Average new vendor asking costs are 0.1% greater than they had been a 12 months in the past. With decrease mortgage charges and common wage rises outstripping each home costs and inflation, Rightmove says general purchaser affordability continues to enhance.
Rightmove’s mortgage tracker exhibits that the typical two-year fastened mortgage price is 4.53%, in contrast with 5.34% at the moment final 12 months, a saving of practically £150 per 30 days on a typical new mortgage.
At the midway level of the 12 months, Rightmove is lowering its price forecast for 2025 from a rise of 4% to an increase of two%, because the excessive degree of vendor competitors is limiting price development.
However, it has retained its prediction of 1.15 million transactions this 12 months.
Rightmove property skilled Colleen Babcock says: “We’re seeing an attention-grabbing dynamic between pricing and exercise ranges proper now. The wholesome and enhancing degree of property gross sales being agreed exhibits us that there are motivated patrons on the market who’re prepared to finalise a deal for the proper property.”
“What’s most vital to bear in mind in this market is that the price is essential to promoting. The decade-high degree of purchaser alternative implies that discerning patrons can shortly spot when a house seems to be over-priced in contrast to the numerous others that could be out there in their space.”
“It seems that extra new sellers are aware of this and are responding to this high-supply market with stand-out pricing to entice patrons and get their residence offered.”
“It’s been a promising first half of the 12 months for exercise ranges, significantly when you think about that some can have introduced their plans ahead to strive to keep away from added stamp responsibility from April. Even after the stamp responsibility deadline, we’re seeing extra gross sales being agreed and extra new potential patrons coming into the market than on the similar time final 12 months.”
“Still, the knock-on impact of excessive purchaser alternative is slower price development, so we’re revising down our prediction of how a lot the asking price of a house will enhance over the entire of the 12 months.”
“Looking forward to the second half of 2025, there’ll nonetheless very seemingly be the standard quieter seasonal intervals across the summer time holidays and Christmas, however we anticipate market exercise to proceed to be resilient. Crucially, purchaser affordability is heading in the proper path, and one other two Bank Rate cuts earlier than 2026 could be an enormous increase to this.”
Together chief industrial officer Ryan Etchells feedback: “A consecutive month-to-month fall in home costs confirms what we’ve been seeing of late: that it’s a patrons market. What could have been interpreted as a blip following the rise in stamp responsibility in April might be a extra extended interval of subdued exercise.”
“While mortgage charges have lowered barely in current months, cussed inflation and excessive stamp responsibility might be holding again patrons, who’re ready to see what is going to occur to mortgage charges in the close to future. All eyes might be on the following Bank of England rate of interest choice subsequent month, with many consultants predicting a reduce.”
“However, subdued home costs could current a superb alternative for aspiring homebuyers, in addition to landlords trying to develop their portfolios.”
“Those eager to seize a chance and transfer ahead with their property plans over the summer time can contemplate the wide selection of monetary merchandise out there, like Shared Ownership mortgages or bridging loans for quick, versatile finance.”
