Average new seller asking prices dropped by 0.4% (£1,617) in July, with the average seller now marketing their property for £373,493, according to the Rightmove house price index.
The property portal found that market activity has remained steady throughout the General Election campaign, and suggested there are signs that some would-be movers are waiting for the first Bank of England base rate cut before moving house. House prices remain stable overall at 0.4% higher than a year ago.
According to Rightmove, the number of sales being agreed remains encouraging at 15% above the same period a year ago, when mortgage rates were approaching their peak. It also found that the number of new sellers coming to market is a steady 3% above last year, while buyer demand remains stable overall.
Current market expectations are that the first Bank of England base rate cut may be in August or September, which would be a boost for most home-movers and bodes well for the Autumn housing market.
Rightmove calculated that the average five-year fixed rate is now 4.97%, which while below the peak of 6.11% in July 2023, is still much higher than the average of 2.51% in July 2021, before interest rates started to rise.
Despite concern among some that the General Election campaign would lead to a significant slowdown in home-moving activity, Rightmove’s data shows that the vast majority of people have been getting on with their moves since the election was called.
Rightmove director Tim Bannister said: “Three major uncertainties hanging over the property market at the start of the year were when the first interest rate cut would be, and the timing and the result of the General Election. We’ve now got the political certainty of a new government with a large majority, which we expect will help home-mover confidence.”
“It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the government is keen to get going with its manifesto pledges. With many areas of the market that could be improved, we hope that the new government is able to get on with its plans and deliver sustainable housing policies that help the market in the medium to longer-term.”
“One area of the market in need of more support is first-time buyers, many of whom have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.”
Foxtons CEO Guy Gittins said: “As expected, the housing market has stood firm despite the political uncertainty of a looming general election, even though a marginal reduction in asking prices suggests a point of consideration amongst some buyers and sellers. Thankfully, England’s Euro 2024 progress does not seem to have been a similar distraction. ”
“It’s already abundantly clear that now the political dust has settled, the post-election market is seeing a notable increase in activity in the few short days that have followed.”
“It’s now a case of ready, set, go for the nation’s buyers and sellers and we expect market momentum to continue to strengthen over the summer, especially with the prospect of a rates cut due in September which could release even more pent up buyer demand – particularly at the one million pound and above price threshold.”
