The average asking price for properties coming to market has fallen by 1.2% this month (£4,531), bringing it down to £373,709.
With available housing stock at its highest level in a decade, summer sellers are pricing more competitively to capture buyer attention, particularly in London, the latest Rightmove figures show.
Realistic and competitive pricing is key to selling, both improving buyer affordability and stimulating stronger buyer activity, the data suggests.
At the halfway point of the year, Rightmove is reducing its property price forecast for 2025 from +4% to +2%, as the high level of seller competition is limiting price growth, and retaining its prediction of 1.15 million transactions this year.
Asking prices record biggest July fall as Rightmove halves growth forecast – Property Industry Eye
Industry reaction:
Jeremy Leaf, north London estate agent and a former RICS residential chairman: “What’s particularly interesting about these figures is that they confirm what we’ve been seeing on the ground recently. Asking prices are not of course values but invariably an owner’s aspirational starting point to determine if genuine buyers are attracted.
“Sales are still being agreed but nearly always with sellers who have recognised the importance of setting a realistic initial figure to differentiate themselves from so much other, often similar, property.
“Otherwise, buyers will take even more time waiting for the ‘right’ property and perhaps worrying about the possibility of autumn tax rises despite improving affordability – including the likelihood of imminent mortgage rate cuts.”
Nathan Emerson, CEO of Propertymark: “The housing market is witnessing a steady return to normality following Stamp Duty threshold changes for those living in England and Northern Ireland at the start of April. As we enter the summer months, when the housing market tends to achieve a peak in sales in activity, it is good to see yet further resilience in house prices year on year.
“We have seen encouraging signs from Rachel Reeves’ Leeds Reforms which are designed to potentially better help lenders serve those on lower incomes. However, such reforms alone will not help keep house prices manageable without the UK Government and the devolved administrations meeting their individual housing targets to keep pace with real world demand.”
Adam Feather, director of Robert Anthony: “In recent weeks, buyer demand in London has held up well, helping to stabilise or even boost property values in some areas. Meanwhile, parts of prime central London have experienced modest price adjustments, creating opportunities for domestic buyers to secure homes in desirable locations that now fall within their original budgets.”
Tomer Aboody, director of specialist lender MT Finance: “With affordability increasing, putting buyers in a better position to purchase, sellers are competing for a relatively limited number of buyers. A reduction in pricing further indicates eagerness from sellers to attract those buyers, which has also increased transaction levels.
“With stamp duty increasing, buyers have been hit but are taking advantage of lower interest rates. We could potentially see at least one more rate reduction this year which will further drive demand.”
Asking prices record biggest July fall as Rightmove halves growth forecast
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-new-rightmove-house-price-index-6/
