The average price tag on a home has tumbled by more than £10,000 across the summer, falling by nearly £5,000 month-on-month in August alone, new data published by Rightmove shows.
Average asking prices fell 1.3% to £368,740 in August, property website Rightmove said on Monday (18 August). While the decline was in line with long-term trends for August, it follows larger-than-usual drops in June and July.
More than one in three properties have been reduced in price since first coming to market, Rightmove added. It said the number of houses for sale is at a decade high, up 10% in a year, improving affordability for aspiring homeowners just as borrowing costs come down.
The average new seller asking price for a home has now fallen by just over £10,000 (£10,777) this summer, Rightmove said. In May, the average price tag on a home was £379,517.
More inventory coming to market is also putting a limit on house values, with prices up just 0.3% year-on-year. More modest valuations are drawing in demand over a summer period that is typically associated with slower sales.
Rightmove said the number of homes changing hands was the largest seen during July since the post-Covid lockdown rebound in 2020, rising 8% from a year ago.
“Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to stand out and attract serious and active buyers,” said Rightmove’s Colleen Babcock.
“Astute buyers are now benefiting 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.”
Babcock noted that 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 reopened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.”
Leave a Reply