New data from property group Rightmove shows that the average asking price on a UK home is 0.1% lower than this time last year.
This represents the first annual price drop since January 2024, and is the culmination of several months of competitive pricing by new sellers over the summer, with the number of sales being agreed now 4% higher than a year earlier.
London and the South of England are responsible for the slowdown, Rightmove said. In the South West of England, asking prices are down by 1.3% compared with last year, while in the North West they have increased by 3.2%, highlighting the South’s underperformance.
“We’d expect to see a slight uptick in new seller asking prices in September, with the traditional back-to-school season boosting activity heading into autumn,” said Colleen Babcock, Property Expert at Rightmove.
“This year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year. However, prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the South of England that is driving this small dip.
“It’s the sensible and attractive seller pricing we’ve been reporting, which has been helping to drive more sales activity compared to last year. Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.”
Another key concern that is potentially impacting the market is the uncertainty around new taxes, she said.
“Rumours of property tax changes began swirling in mid-August, and with the budget itself not arriving until the end of November, this kind of extended uncertainty can affect market activity, especially in the higher price brackets.
“Movers want to be confident in planning their moving costs. Our real-time data has not yet picked up any major shifts; however, it’s understandable that those who could be negatively affected by the rumoured changes might be in the process of reassessing their short- and medium-term plans.”
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