The UK housing market enjoyed its busiest July in five years as falling asking prices and a glut of available homes encouraged more buyers to strike deals.
According to Rightmove, the number of agreed sales rose 8 per cent year-on-year, making it the most active July since 2020, when the post-lockdown “race for space” combined with a stamp duty holiday to fuel a surge in transactions.
The latest data shows that buyers are being tempted back into the market by widespread price reductions. The average asking price of newly listed properties fell by 1.3 per cent in August to £368,740. That follows sharper-than-usual declines in both June and July, meaning average asking prices are now down by nearly £11,000 over the summer.
Larger, high-end homes — typically those valued above £650,000 — have recorded the steepest falls, but sellers across the market are being forced to adjust their expectations. Around a third of properties currently listed on Rightmove have had their prices cut, the second-highest proportion at this time of year since records began.
“Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale,” said Colleen Babcock, head of trade partner marketing at Rightmove.
She added that correctly priced homes are selling within an average of 32 days. By contrast, properties that require price reductions are taking more than three times as long — an average of 99 days — to secure a buyer.
Despite the surge in completed sales, market analysts warned that uncertainty over tax rises, job security, and interest rate policy may weigh on activity in the months ahead. Several property forecasters, including Rightmove, Zoopla and Savills, have recently cut their house price growth predictions for 2025.
While prices have softened in recent months, they remain broadly stable compared with last year. Rightmove said average asking prices are just 0.3 per cent higher than in July 2024.
Some support could come from a moderation in new supply. The number of homes on the market remains 10 per cent higher than last summer, but the flow of new listings slowed in July, with only a 4 per cent increase compared with the same month a year ago.
“This could be an early sign of overall supply levels starting to reduce, particularly with sales activity staying strong,” Babcock said.
Rightmove now expects UK house prices to rise by 2 per cent over the year as a whole, compared with its 4 per cent forecast in the spring.
The improvement in sales volumes may not immediately ease wider concerns about the market. Buyer confidence is being tested by speculation about tax increases in the autumn budget, while the Bank of England has left the pace of interest rate cuts unclear despite lowering its base rate to 4 per cent in August.
With mortgage affordability still stretched for many households and landlords continuing to reduce their presence in the rental market, analysts caution that the market could remain highly sensitive to economic shocks.
Nevertheless, July’s activity will offer some reassurance to sellers and estate agents after a subdued start to the year.
