The UK property market has recorded its largest July price slump in over two decades, with average asking prices falling by 1.2% this month, according to the latest data from Rightmove.
Key Findings from Rightmove’s Report
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The average asking price now stands at £373,709, down £4,531 from June.
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Year-on-year growth is just 0.1%, the smallest annual increase in years.
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This is the steepest July decline since Rightmove began tracking data 20 years ago.
Why Are Prices Falling?
While seasonal dips are common in summer, this year’s drop is particularly sharp. Experts suggest sellers are adopting more competitive pricing strategies to attract buyers in a high-supply market.
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Housing stock is at a 10-year high, giving buyers more choice.
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Sales agreed are up 5% compared to last year, indicating that realistic pricing works.
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Buyers are taking longer to decide, viewing more properties before committing.
Phillip Bishop, Managing Director at Perry Bishop Estate Agents, explains:
“Buyers now have significant choice, making them more selective. Sellers who price competitively are securing deals faster.”
Affordability Improves as Mortgage Rates Drop
Several factors are making homebuying slightly more affordable:
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Wage growth (6%) has outpaced both inflation (2%) and house price growth (0.1%).
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Average two-year fixed mortgage rates have fallen to 4.53% (down from 5.34% last year).
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This could save buyers £150 per month on a typical mortgage.
With the Bank of England expected to cut interest rates twice more this year, further market activity could be stimulated.
Colleen Babcock, Rightmove’s Property Expert, says:
“We’re seeing an interesting dynamic—buyers are motivated, but with so much choice, they’re quick to spot overpriced homes. Smart sellers are adjusting to stand out.”
Regional Price Changes: Where Are Prices Falling Most?
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London saw the biggest drop (-1.5%), with prime inner London falling -2.1%.
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South East (-1.2%), North West (-1.2%), and South West (-1.1%) also declined.
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Only the North East (+1.2%) and East Midlands (0%) avoided price drops.
For a deeper regional breakdown, check Zoopla’s latest market analysis.
What’s Next for the UK Housing Market?
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Rightmove has downgraded its 2025 price growth forecast from 4% to just 2%.
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The market is stabilizing post-stamp duty changes introduced in April.
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Nathan Emerson, CEO of Propertymark, notes:
“The market is showing resilience despite recent disruptions.”
Final Thoughts
While the record July dip may seem alarming, it reflects a more balanced market where realistic pricing drives sales. With mortgage rates easing and buyer confidence returning, the second half of 2024 could see steady, if slower, activity.
For ongoing updates, follow BBC News Property.
