The average price stood at £352,930 – unchanged from July but 2.8% lower than August 2024, and the lowest level recorded since late 2021.
The market has been weighed down by a surge in vendor listings in recent months, but HMRC data shows activity is beginning to stabilise. More than 94,000 transactions were completed in July, broadly in line with the 12-month average, signalling a recovery from earlier distortions caused by stamp duty changes.
e.surv say the market is 'delicately poised', with stronger regional variations - for example, the Southern England market has faltered due to softening demand, whereas overall supply and demand are 'broad balance'. Northern markets appear to be in stronger shape, although prices remain flat: the North East was the only region where prices are stronger than a year ago.
Rob Owens, head of research at e.surv, comments:
“August saw no change in average house prices compared to July, suggesting the recent period of
decline may be easing. However, prices remain 2.8% below their level a year ago and are now at their lowest since late 2021. A surge in new listings has contributed to this softening, even as underlying sales activity shows signs of improvement.
"Property transactions in July returned to typical levels, with over 94,000 completions recorded—
broadly in line with the 12-month average. This marks a recovery from earlier distortions in the
market caused by changes to stamp duty, indicating that transactional momentum is gradually rebuilding.
"Lower mortgage rates have supported demand, but uncertainty around future rate cuts and potential property tax reforms—particularly affecting higher-value homes—continues to weigh on sentiment. Wales may outperform England in the near term, but overall, the market remains delicately balanced heading into the autumn."
