Across the UK, the typical price of a home declined by 1.5% or £5,705, according to property platform Rightmove
The average price of a newly marketed UK home has dropped by more than £5,000 month-on-month in August, as the distractions of school summer holidays traditionally bring a decline in prices.
Across the UK, the typical price of a home declined by 1.5% or £5,705, according to property platform Rightmove. The decline pushed the average asking price to £367,785.
Rightmove said August has seen a monthly drop in prices from July for the past 18 years, with this month’s drop in line with the long-term average.
The decline is largely attributed to the annual slowdown in market activity during the school summer holidays, when many potential buyers pause their home search. As a result, sellers who list their homes during this period often price more competitively to attract the reduced pool of buyers.
However, this year’s market presents a unique dynamic. The first BoE rate cut in four years, implemented at the start of August, has triggered renewed interest among buyers. Since the rate cut to 5% from a 16-year high of 5.25%, the number of potential buyers contacting estate agents has soared by 19% compared to the same period last year, a significant rise from the 11% increase logged in July.
This resurgence in buyer activity has prompted Rightmove to revise its 2024 forecast upwards, now expecting a 1% rise in average asking prices, a shift from the previously predicted 1% drop.
The first Bank rate cut since 2020 has triggered a welcome late summer boost in buyer activity. While mortgage rates aren’t yet substantially down since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment, according to Tim Bannister, Rightmove’s director of property science.
For FTBs, the average asking price — excluding inner London — came in at £227,191, while second-steppers faced a price tag of £340,605. At the top of the ladder, asking prices were on average, £665,492.
London continues to command the higher property prices across the UK, with Kensington and Chelsea at the top.
