The typical asking price of properties has dropped by £10,000 in just three months, pointing to a buyers’ market where it’s possible to haggle on price.
The average price has fallen to £368,740, though the number of sales agreed are up 8% year-on-year, Rightmove’s House Price Index shows.
It’s not unusual for house prices to slide during this time of year, with summer holiday distractions commonly resulting in a slower market in August.
Colleen Babcock, property expert at Rightmove, said: “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.”
As it stands a third (34%) of properties for sale are at a reduced price, while the average time it takes to find a buyer is 62 days.
From a seller’s point of view pricing the property correctly is crucial to achieving a quick sale, as it takes an average of 32 days to find a buyer if a property doesn’t need a price reduction, versus 99 days if it does.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “As is customary at this time of year with so many on holiday, the quantity of our enquiries may have dropped but the quality has improved. Serious buyers are taking advantage of the extra choice and their burgeoning bargaining power.
“On the ground, realistic sellers too are not fixated with achieving the maximum price possible but concentrating on the difference between what they receive and what they have to pay for their next home. As a result, some values are softening but not dropping significantly.
“Looking forward, those returning holidaymakers may be in for a shock when they see that property which could have been bought at a considerable discount a few months ago is now under offer – and at a better-than-expected price.”
Bank base rate cut – the last this year
The Bank of England’s third interest rate cut of 2025, from 4.25% to 4%, is set to boost confidence in the market over the remaining months of the year.
Rightmove data 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 fixed mortgage on the average home, based on having a 20% deposit and spreading the mortgage over 30 years.
Rightmove predicted some further small mortgage rate reductions over the next few weeks but no major drops.
While this year’s third interest rate cut is positive news for home-movers, the vote was closer than many expected, which has created some uncertainty over a previously anticipated fourth Bank Rate cut later in the year.
Matt Smith, Rightmove’s mortgages expert, said: “It was positive to see last week’s third Base Rate cut of the year, but the supporting commentary from the Bank of England suggests the opportunity for further cuts has narrowed.
“The markets are currently forecasting one more cut before the end of the year. Lenders have moved their rates downwards to remain competitive, but there doesn’t look like much room for too many further reductions if current market forecasts play out.
“We could potentially see some lenders squeeze their margin to gain a competitive advantage, but I don’t think this would play out across the market and would likely target specific segments of movers.
“Overall, with further data to be releases and external events to play out, I think it’s likely rates will remain pretty much flat from here, with only small movements up or down.”