UK home sellers have recorded their strongest July for agreed sales in five years after cutting asking prices to their most competitive summer levels since the pandemic, according to Rightmove.
The average new seller asking price fell 1.3% in August, equivalent to £4,969, to £368,740.
Combined with declines in June and July, average asking prices are now £10,777 lower than three months ago.
Rightmove said the more aggressive pricing strategy had helped drive an 8% annual rise in agreed sales in July, the highest for the month since 2020, when the market was buoyed by post-lockdown demand and temporary stamp duty relief.
BUYERS MARKET
Colleen Babcock, property expert at Rightmove, says: “Astute buyers are now benefitting from new seller asking prices which are on average £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 – but our data shows it’s better to get the price right in the first place than to cut it later.”
One in three homes on the market (34%) are now undergoing a price reduction, a level exceeded only once at this time of year in the past decade.
Rightmove data shows the average time to find a buyer is 32 days for correctly priced homes but rises to 99 days if a price cut is needed.
SUPPLY AT 10-YEAR HIGH
The number of available homes for sale remains 10% higher than last year, keeping supply at a ten-year high, though the number of new listings is now only 4% ahead of 2024, suggesting stock levels could start to tighten if sales activity remains strong.
Market sentiment has been buoyed by the Bank of England’s third interest rate cut of 2025. The average two-year fixed mortgage rate has fallen to 4.49% from 5.17% a year ago, saving the typical borrower £117 a month based on a 20% deposit and a 30-year term.
“Modest mortgage rate reductions are expected in the coming weeks.”
Further modest mortgage rate reductions are expected in the coming weeks, though uncertainty remains over a potential fourth base rate cut this year.
Babcock adds: “We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home. The recent rate cut will help sustain buyer confidence, and with mortgage rates trending downwards, there’s a solid foundation for activity heading into the autumn market.”
EXPERT VIEWS
Matt Smith, Rightmove’s mortgages expert, says: “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.”
GET THE PRICE RIGHT
Steve Beercock, Executive Director at Beercocks in Yorkshire & The Humber, says: “August has started with some real momentum. We have already seen a surge of sales agreed in just the first week which is a very positive sign.
“Getting the price right from the outset in the current market is crucial, to minimise the risk of needing to cut the price later.
“Locally in Yorkshire & The Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors.
“Stamp duty thresholds are not having a major effect at the moment. We saw the expected spike before and immediately after the most recent change, but things have now settled.
“I expect September to be very strong.”
“Looking ahead, I expect September to be very strong. The recent drop in the Bank of England base rate is already stimulating activity.
“Mortgage colleagues have seen a marked increase in buyer enquiries in the past couple of weeks, and we are seeing exactly the same in our estate agency.
“With that combination of lower borrowing costs and motivated sellers who are pricing sensibly, the autumn market is shaping up to be busy and competitive.”
REALISTIC PRICING DRIVING MOMENTUM
Amy Reynolds, Head of Sales at Antony Roberts in Richmond, London: “July and August have both been busier than expected in Richmond, with strong agreed sales and very few fall-throughs.
“Realistic pricing from the outset is driving momentum, and well-presented homes – especially family houses in good school catchments – are attracting committed buyers.
“At the top end, stamp duty is a constant talking point. While the high cost is slowing some decisions, the desire for more space is still pushing people to commit.
“What’s surprised me most is the first-time buyer flat market.”
“What’s surprised me most is the first-time buyer flat market in our area. It slowed after the stamp duty holiday ended but has now rebounded strongly.
“That said, there are still some well-priced homes sitting unsold, often because buyers are holding back. Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer holiday period and heading into the busier autumn.
“Those who hold back may see the property they like snapped up by someone else, so it’s always worth an enquiry to gauge the seller’s position.”
IMPROVED QUALITY
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.”
CONSUMER CONFIDENCE
Mary-Lou Press, President of NAEA Propertymark, says: “Despite recent changes regarding stamp duty, and the fact that there is still so much economic uncertainty, it is extremely positive to witness an uplift in sales being agreed and an increase in properties coming to the market.
“The performance of the property sector is a strong indicator of consumer confidence and it has been reassuring to see base rate cuts across the past few months that have helped to create greater levels of affordability.
“The last base rate cut was decided with a very slim majority by the Monetary Policy Committee of 5-4 in favour of lowering the base rate, clearly demonstrating how cautious the decision was overall. With inflation still not down at the initially targeted rate of 2% all eyes will be on the Bank of England as the year plays out.”
