The average price of property coming to the market for sale has risen by 0.4% (+£1,517) this month to £370,257. This is according to the latest Rightmove House Price Index.
Despite this month’s increase in prices, the first since May, the average asking price for a home in the UK is now 0.1% (-£502) lower than a year ago.
This first annual price drop since January 2024 is the culmination of several months of competitive pricing by new sellers over the summer.
Average new seller asking prices are now 0.1% below this time last year following several months of muted price growth
The dip in annual prices is driven by London and the south, as the region underperforms the rest of the UK.
Competitive pricing is markedly more pronounced in the south. The number of homes for sale in the area is up 9% on 2024, compared with 2% across the UK, and it takes an average of five days longer to secure a buyer.
However, the number of sales being agreed is 4% ahead of this time last year. In the south of England, it is still up by 3% year-on-year, while it’s up by 5% across the rest of the UK.
Rightmove’s data indicates no immediate reaction from movers to property tax rumours. However, nervousness around what might be revealed in the Autumn Budget risk slowing the parts of the market that are already underperforming.
Commenting on the latest figures Rightmove property expert Colleen Babcock said: “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.”
She added “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.”
MT Finance director Tomer Aboody commented: “The affordability matrix still shows that first-time buyers are struggling to get on the ladder, with the average property price still higher than the average couple’s 4.5 times income multiple. Surely this has to change so that first-time buyers can afford to purchase their first home?”
He insisted that stamp duty reform wass urgently needed to allow more homes to come to the market, so that downsizers were encouraged to sell and enable families to buy. This would also free up more affordable flats and smaller houses for first-time buyers.
He added: “The property cycle is a huge focal point of the economy in the UK, and any government discouraging this, or not actively trying to bolster this, will see the economy falter.”
