Average asking prices dropped by 0.4% to £373,493 this month as home sellers seek to cut through the summer’s distractions and catch buyers’ attention, according to the latest index from Rightmove.
The property website says the fall is bigger than normal for this time of year as the General Election, Euros and Olympics mean that many buyers may be less focussed on the housing market.
It says that market activity remained steady throughout the General Election campaign.
Although some buyers may be holding off for the Bank of England to cut interest rates, most are forging ahead with moving plans.
The number of sales agreed is 15% above the same period a year ago, when mortgage rates were approaching their peak
The number of new sellers coming to market is 3% above last year
Buyer demand remains stable overall, but there has been a 2% drop in registrations from first-time buyers as their affordability is more stretched.
Current market expectations are that the first Bank of England Base Rate cut may be as soon as August or September, which would be a boost for most home-movers and bodes well for the Autumn market.
Rightmove director of property science Tim Bannister says: “Three major uncertainties hanging over the property market at the start of the year were when the first interest rate cut would be, and the timing and the result of the General Election.
“We’ve now got the political certainty of a new government with a large majority, which we expect will help home-mover confidence.
“It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the government is keen to get going with its manifesto pledges.
He adds: “One area of the market in need of more support is first-time buyers, many of whom have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.”
Worcestershire estate agency Nicol & Co’s managing director Matt Nicol says: “The new government’s focus on maintaining low taxes, inflation, and mortgage rates, along with plans to improve the planning system and unlock much-needed housing development, was positive news highlighted by new Chancellor earlier this week, and we hope this might add to the positive outlook for a healthy Autumn market and the future.”
