Savvy summer sellers boost July sales to highest level since 2020, Rightmove reveals
The average asking price for newly listed homes in the UK dropped by 1.3% in August, falling £4,969 to £368,740, according to new data from Rightmove.
This seasonal decline aligns with the typical pattern seen over the past decade, following larger-than-usual price drops earlier in the summer.
Over the course of the summer, average asking prices have decreased by more than £10,000, as sellers adopt more competitive pricing strategies to attract buyers. This approach has contributed to the highest number of sales agreed in July since 2020. However, more than one in three homes on the market have undergone price reductions, indicating that some sellers initially set prices too high.
“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 (pictured far left), 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. 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 re-opened 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.”
The number of agreed sales is now 8% higher than at the same point last year. The supply of homes for sale remains robust, with available stock up 10% year-on-year. However, the number of new listings is only 4% higher than last year, which may signal a gradual reduction in overall supply if strong sales continue.
Currently, 34% of homes listed for sale have seen a price reduction during marketing, a figure only surpassed at this time last year since 2012. The average time to secure a buyer stands at 62 days, but properties priced correctly from the outset typically sell in 32 days. In contrast, homes that require a price cut take an average of 99 days to find a buyer.
Regional agents have also reported increased activity. “August has started with some real momentum,” said Steve Beercock (pictured second from left), executive director at Hull-based Beercocks Estate Agents. “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.”
Amy Reynolds (pictured second from right), head of sales at Antony Roberts in Richmond, London, observed that realistic pricing is driving sales and that family homes in good school catchments are attracting committed buyers. “July and August have both been busier than expected in Richmond, with strong agreed sales and very few fall-throughs,” she said.
“Realistic pricing from the outset is driving momentum, and well-presented homes – especially family houses in good school catchments – are attracting committed buyers.
“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.”
Meanwhile, Rightmove’s experts said the Bank of England’s recent base rate cut has provided a further boost to market sentiment. The property platform’s mortgage tracker reports that the average two-year fixed mortgage rate has dropped to 4.49%, down from 5.17% a year ago. This change translates to a monthly saving of £117 for buyers with a 20% deposit on an average-priced home, assuming a 30-year mortgage term.
While further small reductions in mortgage rates are anticipated, significant drops are not expected. The latest rate cut was decided by a narrow margin, introducing some uncertainty about the likelihood of another cut later this year.
“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,” commented Matt Smith (pictured far right), Rightmove’s mortgages expert. “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.”
For Babcock, while the latest base rate cut is not expected 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,” she said.
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