UK house prices drop by £4,969 as savvy sellers | U.Ok.Finance News
UK house prices dropped by an average of £4,969 this month as sellers undertake more aggressive pricing methods this summer time. According to Rightmove’s latest house price index, asking prices for new listings fell to £368,740 on average in August, aligning with the standard 10-year pattern after unusually steep price drops in June and July.This summer time, prices dipped by over £10,000 (-£10,777), reflecting sellers’ efforts to stand out and appeal to patrons during a historically quieter period on account of vacation distractions. Property knowledgeable Colleen Babcock from Rightmove stated: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. Astute buyers are now benefitting 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. 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 lately reopened after the primary pandemic lockdown, and beneficiant stamp obligation reductions had simply been introduced.However, Ms Babcock warned: “The high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.“Our data shows that for a successful sale, it’s better to get the price right in the first place, but if a seller does need to reduce the price, it’s better to act fast rather than waiting too long.”The quantity of gross sales being agreed is now 8% greater than at this time final 12 months, with decrease asking prices and good purchaser selection combining to drive higher-than-usual gross sales exercise for this time of 12 months.The quantity of obtainable houses for sale is 10% greater than at this time final 12 months, protecting the amount of houses for sale at a decade high. However, the quantity of new properties coming onto the market for sale is now solely 4% forward of this time final 12 months, doubtlessly an early signal of general provide ranges beginning to slowly scale back.Ms Babcock stated, “We expect this good buyer activity to help support prices in the next few months.”According to Rightmove’s information, the average time to seek out a purchaser was 62 days. The high quantity of houses for sale allowed patrons to make their selection and negotiate.However, if a home was priced proper from the outset and did not require an asking price discount, the average time to seek out a purchaser was 32 days. If a home needed a discount in asking price, this more than tripled to 99 days.The Bank of England’s welcome third rate of interest cut of 2025 is more likely to increase market confidence over the remaining months of the 12 months.Rightmove’s each day mortgage tracker confirmed that purchaser affordability has been enhancing, with the average two-year fixed mortgage price now 4.49%, in contrast with 5.17% at this time final 12 months.This equates to a saving of £117 monthly for somebody taking out a two-year fixed mortgage on the average home, primarily based on having a 20% deposit and spreading the mortgage over 30 years.Matt Smith, mortgages knowledgeable at Rightmove, stated: “The markets are currently forecasting one more [base rate] 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.”Steve Beercock, govt director at Beercocks in Yorkshire and The Humber, stated: “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.“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.”Amy Reynolds, head of gross sales at Antony Roberts in Richmond, London, stated: “July and August have both been busier than expected in Richmond, with strong agreed sales and very few fall-throughs.“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.”
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