"An active autumn will certainly be helped by the recent third interest rate cut of 2025 by the Bank of England. While we don’t expect the cut itself to spark major mortgage rate drops, it’s good for market sentiment and buyer optimism"
- Colleen Babcock - Rightmove
The average asking price for homes coming onto the market fell by 1.3% in August, a drop of £4,969 to £368,740. This seasonal decrease aligns with the ten-year average, following larger-than-usual declines in June and July.
Many sellers are adjusting prices to appeal to buyers distracted by summer holidays. Competitive pricing and a wide choice of properties have helped deliver the highest number of sales agreed in July since the post-lockdown surge of 2020.
According to Rightmove, the number of agreed sales is now 8% higher than at the same point last year, with the volume of homes for sale having risen by 10% compared to the previous year, keeping annual price growth at just 0.3%.
The time to secure a buyer varies significantly. The average is 62 days, but properties priced correctly from the start take 32 days to sell, while those that need a price cut take 99 days on average. 34% of properties on the market have had a price reduction, the second-highest proportion for this time of year since 2012.
A third interest rate cut by the Bank of England this year has supported buyer confidence. Rightmove’s mortgage tracker shows the average two-year fixed rate has dropped to 4.49% from 5.17% a year ago. This reduction equates to a monthly saving of £117 on the average home for those with a 20% deposit and a 30-year mortgage term. However, the close vote on the cut has left some uncertainty over a possible fourth reduction this year.
“Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers,” said Colleen Babcock, property expert at Rightmove. “Astute buyers are now benefitting from new seller asking prices which are, on average, an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale."
Babcock added, "The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020. At that time, the market had recently reopened after the first pandemic lockdown, and generous stamp duty reductions had just been announced."
"However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive. Our data shows that for a successful sale, it’s better to get the price right in the first place, but if a seller does need to reduce the price, it’s better to act fast rather than waiting too long.”
Babcock explained that strong summer sales and consistent buyer demand are encouraging signs for the months ahead. “We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home. Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale," she said.
"An active autumn will certainly be helped by the recent third interest rate cut of 2025 by the Bank of England. While we don’t expect the cut itself to spark major mortgage rate drops, it’s good for market sentiment and buyer optimism. Mortgage rates have been slowly trending downwards this year, and someone looking at the average home could expect to save over £100 a month on a new mortgage compared with last year.”
Matt Smith, mortgages expert at Rightmove, comments, “It was positive to see last week's third Base Rate cut of the year, but the supporting commentary from the Bank of England suggests the opportunity for further cuts has narrowed."
"The markets are currently forecasting one more cut before the end of the year. Lenders have moved their rates downwards to remain competitive, but there doesn't look like much room for too many further reductions if current market forecasts play out. We could potentially see some lenders squeeze their margin to gain a competitive advantage, but I don't think this would play out across the market and would likely target specific segments of movers."
He concluded, "Overall, with further data to be released and external events to play out, I think it's likely rates will remain pretty much flat from here, with only small movements up or down.”
Steve Beercock, executive director at Beercocks in Yorkshire & The Humber, noted, “August has started with some real momentum."
"We have already seen a surge of sales agreed in just the first week, which is a very positive sign. Getting the price right from the outset in the current market is crucial to minimise the risk of needing to cut the price later. Locally in Yorkshire & The Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors."
"Stamp duty thresholds are not having a major effect at the moment. We saw the expected spike before and immediately after the most recent change, but things have now settled. Looking ahead, I expect September to be very strong. The recent drop in the Bank of England base rate is already stimulating activity."
"Mortgage colleagues have seen a marked increase in buyer enquiries in the past couple of weeks, and we are seeing exactly the same in our estate agency. With that combination of lower borrowing costs and motivated sellers who are pricing sensibly, the autumn market is shaping up to be busy and competitive.”
Amy Reynolds, head of sales at Antony Roberts in Richmond, London, commented, “July and August have both been busier than expected in Richmond, with strong agreed sales and very few fall-throughs."
"Realistic pricing from the outset is driving momentum, and well-presented homes – especially family houses in good school catchments – are attracting committed buyers. At the top end, stamp duty is a constant talking point. While the high cost is slowing some decisions, the desire for more space is still pushing people to commit. What’s surprised me most is the first-time buyer flat market in our area. It slowed after the stamp duty holiday ended but has now rebounded strongly."
"That said, there are still some well-priced homes sitting unsold, often because buyers are holding back. Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer holiday period and heading into the busier autumn. Those who hold back may see the property they like snapped up by someone else, so it’s always worth an enquiry to gauge the seller’s position.”
