Lower asking prices and good buyer choice are continuing to boost sales activity, resulting in the best July for sales agreed since 2020’s active post-lockdown market, according to the latest data from Rightmove.
Average new seller asking prices are down by a seasonal 1.3% this month to £368,740. August’s price drop is in line with the previous ten-year average, returning to seasonal trends after bigger than usual asking price drops in June and July.
The average new seller asking price for a home has now fallen by just over £10,000 this summer, as savvy summer sellers price competitively to stand out and attract a buyer. This has contributed to the highest number of sales agreed in the full month of July since 2020.
The number of sales being agreed is now 8% higher than at this time last year, with lower asking prices and good buyer choice combining to drive higher than usual sales activity for this time of year.
The number of available homes for sale is 10% higher than at this time last year, keeping the volume of homes for sale at a decade high. However, the number of new properties coming onto the market for sale is now only 4% ahead of this time last year, potentially an early sign of overall supply levels starting to slowly reduce, particularly with strong sales activity. Rightmove expects this good buyer activity to support prices in the next few months.
While the right property at the right price is still finding a buyer, evidenced by the high number of agreed sales, it appears that some sellers are still coming to market with a too-high initial price, shown by more than one in three homes seeing a price reduction during marketing.
34% of homes are now seeing a reduction in price during marketing. In data that goes back to 2012, this figure has only been higher at this time of year in 2023, and a "two-speed market is becoming more evident", Rightmove says. The overall average time to find a buyer is now 62 days, with the high number of homes for sale allowing buyers the time to make their choice and negotiate. However, if a home is priced right from the outset and doesn’t require an asking price reduction, the average time to find a buyer is 32 days, whereas if a home does need a reduction in asking price, this more than triples to 99 days.
In addition, Rightmove notes that the Bank of England’s third interest rate cut of 2025 is likely to be another boost of confidence for the market over the remaining months of the year. Rightmove’s daily mortgage tracker shows that buyer affordability has been improving, with the average two-year fixed mortgage rate now 4.49%, compared with 5.17% at this time last year. This equates to a saving of £117 per month for someone taking out a two-year fix mortgage on the average home. Rightmove expects some further small mortgage rate reductions over the next few weeks but no major drops.
Colleen Babcock, property expert at Rightmove, commented: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. Astute buyers are now benefitting from new seller asking prices which are on average an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale. The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020. At that time, the market had recently re-opened after the first pandemic lockdown, and generous stamp duty reductions had just been announced. However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive. Our data shows that for a successful sale it’s better to get the price right in the first place, but if a seller does need to reduce the price it’s better to act fast rather than waiting too long.
“Strong summer property sales as well as a stable level of new buyer demand bode well for the next couple of months. We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home. Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale, An active autumn will certainly be helped by the recent third interest rate cut of 2025 by the Bank of England. While we don’t expect the cut itself to spark major mortgage rate drops, it’s good for market sentiment and buyer optimism. Mortgage rates have been slowly trending downwards this year, and someone looking at the average home could expect to save over £100 a month on a new mortgage compared with last year.”
