The average asking price for property in the UK dropped by 1.2% this month, falling by £4,531 to £373,709, data published by Rightmove on Monday (21 July) shows.
While July typically sees a seasonal dip, this marks the largest decline for the month recorded by Rightmove in over two decades of data. Sellers are responding to intense competition by pricing homes more attractively in a bid to engage distracted summer buyers, the group said.
London has been the biggest regional driver of this month’s price reduction, with a 1.5% fall in new seller asking prices. Inner London led the regional decrease with a 2.1% drop.
Factors contributing to this include recent changes to stamp duty, as well as updates to non-dom tax rules and broader uncertainty over future tax reforms, all of which may be dampening investor demand in central areas.
Despite the fall in headline prices, buyer activity has remained strong. The number of sales being agreed is 5% higher than at the same point last year, and buyer interest has also increased, with a 6% rise in enquiries to estate agents compared to July 2024. More sellers are taking a realistic approach in response to a market where the supply of homes for sale remains at a decade-high level.
“We’re seeing an interesting dynamic between pricing and activity levels right now,” said Colleen Babcock, property expert at Rightmove. “The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.”
“What’s most important to remember in this market is that the price is key to selling. The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area. It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.”
Year-on-year, the average new seller asking price is now just 0.1% higher than in July 2024. In contrast, average earnings have risen by over 5%. This gap is helping more buyers re-enter the market or consider moving home, particularly those who had previously been priced out.
As a result, Rightmove has adjusted its 2025 forecast in response to these market dynamics. The average asking price for a home is now expected to rise by 2%, rather than the previously predicted 4%. However, the platform has maintained its expectation of 1.15 million housing transactions over the course of the year.
“It’s been a promising first half of the year for activity levels, particularly when you consider that some will have brought their plans forward to try to avoid added stamp duty from April,” said Babcock.
“Even after the stamp duty deadline, we’re seeing more sales being agreed and more new potential buyers entering the market than at the same time last year. Still, the knock-on effect of high buyer choice is slower price growth, so we’re revising down our prediction of how much the asking price of a home will increase over the whole of the year.”
“Looking ahead to the second half of 2025, there will still very likely be the usual quieter seasonal periods around the summer holidays and Christmas, but market activity will continue to be resilient,” she said.
“Crucially, buyer affordability is heading in the right direction, and another two Bank Rate cuts before 2026 would be a big boost to this.”
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