The gap between seller asking prices and mortgage-backed property values widened during the second quarter as asking prices rose faster than the prices being financed by buyers.
The latest Benham and Reeves Property Market Index Review puts the average UK asking price at £376,151 during Q2, compared with an average mortgage-approved property price of £288,449.
That represents a 30.4% gap between the two measures, up from 28.7% during the first quarter and the second consecutive quarterly increase.
The agency’s wider composite index nevertheless points to continued house price growth, with its UK measure rising 1.1% during Q2 following growth of 0.5% in the first quarter.
SELLER EXPECTATIONS
Benham and Reeves says its composite average UK property value reached £308,728, 1.2% higher than during the same period last year.
Its index combines data from Halifax, Nationwide, Rightmove and the UK House Price Index to provide a single measure drawing on mortgage approvals, asking prices and completed transactions.
The gap between the separate asking-price and sold-price indices also widened during Q2.
The average sold price measure stood at £271,203 compared with the £376,151 asking-price measure, a gap of 27.9%, up from 27.1% in Q1.
Marc von Grundherr (main picture), Director of Benham and Reeves, says: “There remains a clear degree of confidence amongst sellers, with asking prices continuing to climb, although the widening gap between asking and achieved prices nationally demonstrates that buyers remain considered in what they are willing to pay.”
LONDON MARKET
London recorded a second consecutive quarter of growth according to the composite index, with its average value rising 0.4% to £588,373.
However, values remained 1.1% below their level in Q2 2025.
The gap between London’s mortgage-approved and asking-price measures remained unchanged at 26.5%, following three consecutive quarterly falls.
Von Grundherr adds: “While values remain marginally lower on an annual basis, two consecutive quarters of growth suggest that the capital has regained some stability following the declines seen during the second half of last year.
“As ever, realistic pricing remains key and sellers who recognise the balance between ambition and current buyer affordability will be best placed to secure a successful sale.”
