Asking prices for UK homes drop but sales surge in July

Britain’s housing market is showing mixed signals as summer demand remains robust but prices slip, property site Rightmove said.

Asking prices for newly listed homes fell 1.3% in the four weeks to Aug. 9, in line with a normal seasonal dip, after unusually large declines in prior months . However, July’s agreed home sales were the highest for that month since 2020, suggesting strong buyer activity.

In annual terms, asking prices were up about 0.3%, indicating little net change year-on-year . Colleen Babcock, Rightmove’s housing market expert, noted that “sellers are competing more on price,” with one-third of properties on the market seeing price cuts, a high level for the time of year . The record sales in July reflect a surge in buyer interest; Rightmove said agreed sales reached levels not seen since the start of the COVID-19 pandemic.

The Bank of England’s recent interest rate cut, its fifth since August 2024, is unlikely to sharply reduce mortgage costs in the near term, but it may have encouraged some buyers into the market. Two-year fixed mortgage rates have indeed eased, falling to about 4.49% from 5.17% a year ago. Nonetheless, the Royal Institution of Chartered Surveyors last week cautioned that the housing recovery had “lost steam,” amid worries about possible tax rises in the autumn budget. Buyers and sellers appear to be navigating a cautious market: sales are high, but selling prices are under pressure in some areas as supply of homes remains elevated.