FT: UK property asking prices fall faster than usual in July

FT: UK property asking prices fall faster than usual in July

UK property asking prices experienced a significant drop in July, marking the steepest monthly decline in over two decades, according to Rightmove [1]. The average price of homes coming up for sale fell by 1.2%, or £4,531, compared to June, reaching £373,709.

The primary drivers behind this sharp decline include the end of temporary stamp duty discounts and an increased number of homes entering the market. The number of properties for sale has reached a decade-high level, making it more challenging for sellers to attract buyers during the traditional summer holiday season [2].

London and higher-end properties were particularly affected, with asking prices falling by 1.5% and 2.1% respectively in London and inner London. This trend is attributed to the April increase in stamp duty, which has had a more pronounced impact on higher-value properties [1].

Despite the price drop, the number of property sales agreed upon in July was 5% higher than last year, indicating a healthy level of buyer activity. The increase in potential buyers contacting estate agents also rose by 6% year-on-year, suggesting that buyers are more active despite the higher supply of properties [2].

The Bank of England's anticipated interest rate cuts and the overall improving affordability due to wage growth and lower mortgage rates are likely to support the housing market in the coming months [2]. However, the average asking price remains 0.1% higher than last year, indicating that the market is still stable [1].

In summary, while July's price drop is the largest monthly decline since records began, the overall housing market remains robust, with increased buyer activity and improving affordability. The market is expected to continue adjusting, potentially leading to a more balanced housing landscape.

References:
[1] https://www.theguardian.com/business/2025/jul/21/average-uk-house-asking-price-steepest-monthly-drop-for-20-years
[2] https://finance.yahoo.com/news/uk-property-asking-prices-fall-230103731.html