July House Price Update: What It Means for You
This month’s Rightmove House Price Index brings a clear message: sellers are getting serious—and that’s good news for buyers and sellers alike.
Asking Prices See Largest July Drop in 20+ Years
The average asking price for a home coming to market in July dropped by 1.2% (a reduction of £4,531), landing at £373,709. While small seasonal dips are normal during summer, this is the biggest July fall recorded in over two decades.
But don’t let the headline worry you; this isn’t a market downturn. Instead, it signals a shift towards realistic pricing in response to increased stock and a more discerning buyer pool. Sellers who price competitively are finding success, with sales agreed up 5% compared to this time last year.
Buyer Activity Is On the Rise
Despite more homes being available than at any point in the last ten years, demand is holding strong:
Buyer enquiries are 6% higher than last year.
Average asking prices are now just 0.1% higher year-on-year.
With average wages rising faster than house prices, buyer affordability is improving steadily.
And the cherry on top? Mortgage rates are falling. A typical two-year fixed mortgage is now at 4.53%, down from 5.34% a year ago—potentially saving new buyers nearly £150/month.
Regional Highlights
Not all areas are following the same trend. London saw the sharpest monthly dip (-1.5%), especially Inner London (-2.1%), largely due to higher price points and tax changes. In contrast, the North East, one of the more affordable regions, saw prices rise by 1.2%, showing that demand in lower-priced areas remains strong.
What This Means for You
Whether you're buying or selling, here’s how to make the most of the current market:
✅ Sellers – Now more than ever, pricing your home accurately is key. With so much choice available to buyers, overpriced homes risk being overlooked altogether.
✅ Buyers – You’re in a stronger position than last year. Increased stock, better affordability, and falling mortgage rates all mean you have more room to find the right fit.
✅ Investors – Keep an eye on the regions seeing steady growth, like the North East, and consider how long-term affordability and rental yields may be impacted by current trends.
Forecast Update: Rightmove has now revised its 2025 price forecast from a 4% rise to 2%, citing high supply as a limiting factor for growth—but with strong transaction numbers still expected.
If you’re thinking of making a move, preparation and strategy are everything. Whether you’re buying, selling, or just watching the market—feel free to get in touch. We’re always happy to talk through your plans.
