The common worth of property coming to the marketplace for sale has risen by 0.4% (+£1,517) this month to £370,257. This is in accordance with the newest Rightmove House Price Index.
Despite this month’s improve in costs, the primary since May, the typical asking worth for a house within the UK is now 0.1% (-£502) decrease than a 12 months in the past.
This first annual worth drop since January 2024 is the end result of a number of months of aggressive pricing by new sellers over the summer time.
Average new vendor asking costs at the moment are 0.1% beneath this time final 12 months following a number of months of muted worth development
The dip in annual costs is pushed by London and the south, because the area underperforms the remainder of the UK.
Competitive pricing is markedly extra pronounced within the south. The variety of houses on the market within the space is up 9% on 2024, in contrast with 2% throughout the UK, and it takes a median of 5 days longer to safe a purchaser.
However, the variety of gross sales being agreed is 4% forward of this time final 12 months. In the south of England, it’s nonetheless up by 3% year-on-year, whereas it’s up by 5% throughout the remainder of the UK.
Rightmove’s information signifies no speedy response from movers to property tax rumours. However, nervousness round what is likely to be revealed within the Autumn Budget threat slowing the components of the market which might be already underperforming.
Commenting on the newest figures Rightmove property skilled Colleen Babcock mentioned: “We’d anticipate to see a slight uptick in new vendor asking costs in September, with the standard again to highschool season boosting exercise heading into autumn.”
She added “It’s the smart and enticing vendor pricing we’ve been reporting which has been serving to to drive extra gross sales exercise in comparison with final 12 months. Static home costs, rising wages, and decrease mortgage charges all help purchaser affordability, which has led to a rise within the variety of gross sales agreed in comparison with a 12 months in the past.”
MT Finance director Tomer Aboody commented: “The affordability matrix nonetheless exhibits that first-time patrons are struggling to get on the ladder, with the typical property worth nonetheless larger than the typical couple’s 4.5 occasions earnings a number of. Surely this has to alter in order that first-time patrons can afford to buy their first house?”
He insisted that stamp obligation reform wass urgently wanted to permit extra houses to return to the market, in order that downsizers have been inspired to promote and allow households to purchase. This would additionally unencumber extra inexpensive flats and smaller homes for first-time patrons.
He added: “The property cycle is a big focus of the economic system within the UK, and any authorities discouraging this, or not actively attempting to bolster this, will see the economic system falter.”
