UK property asking prices fall faster than usual in July
London and higher-end properties see biggest decline driven by competition to find buyers
Property asking prices fell in July, marking the steepest monthly decline for this time of year, driven by high competition for buyers with London and higher-end properties registering the biggest fall.
Average new seller asking prices dropped 1.2 per cent between June and July, representing a £4,531 fall to £373,709, Rightmove said on Monday.
While there is usually a seasonal dip in prices in July, Rightmove said it was the largest monthly price drop at this stage in the summer season since records began more than twenty years ago.
“The continued decade-high level of housing supply for sale is limiting price growth, compounded by the start of the traditional summer holiday season,” according to the property portal.
The fall in asking prices was driven by London with a 1.5 per cent drop, led by inner London, where asking prices declined 2.1 per cent.
Higher-end properties, covering all five-bedroom homes and four-bed detached houses, fell by 1.6 per cent compared with a 0.6 per cent drop for smaller properties.
Asking prices were still 0.1 per cent up from July last year, while the number of sales being agreed was up 5 per cent year-on-year.
Rightmove data gives a first indication of the state of the property market in July ahead of the release of official and other unofficial figures in coming weeks.
Colleen Babcock, property expert at Rightmove, said: “The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.”
However, “the decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced”, she added.
Rightmove also reported the number of potential buyers contacting estate agents about homes for sale was 6 per cent higher in July than last year, helped by increased affordability.
Average wage growth is outstripping house price increases and inflation, making it more affordable for prospective home buyers who have been further supported by falling mortgage rates.
Financial markets are pricing a high probability that the Bank of England will cut interest rates by a quarter percentage point at the next meeting on August 7 from the current level of 4.25 per cent.
Property prices have been volatile this year due to changes to stamp duty thresholds, which reverted to pre-2022 levels, increasing the tax cost for many property buyers.
Official data published last week showed UK house prices rebounded 1.1 per cent in May after a 2.7 per cent contraction in April.
Rightmove tracked newly listed properties marketed via more than 16,000 estate agency branches in the four weeks to July 12.