Prices for UK houses drop in July 2024

According to property listing platform, Rightmove, the average seller’s asking price dropped by 0.4% (equating to an average of -£1,617) in July, a bigger drop than we have typically seen. This is believed to be down to sellers trying to gain the attention with the General Election, sporting events such as the EUFA Euros, and Wimbledon, as well as the summer holiday season looming, with a more tempting price.

Market activity has remained steady throughout the General Election campaign, with some potential movers waiting for the first Bank of England Base Rate cut, but most are still continuing with their house move plans:

• The number of sales agreed remains good at 15% above compared to a year ago when mortgage rates were at their highest
• The number of new sellers is above 3% compared to the same period last year
• Demand remains stable but there is a slight drop (-2%) in the first-time buyer sector

Expectations are that the first Bank of England Rate cut may be sooner than anticipated in August or September this year, encouraging those looking to move. The average five-year fixed rate is currently 4.97%, down from 6.11% which was the rate in July 2023, but significantly higher than the 2.51% average in July 2021.

Rightmove’s Director of Property Science, Tim Bannister said:

“A Base Rate cut is expected to lead to lower mortgage rates, which could be the game-changer for some would-be home-movers who are being held back by significantly higher monthly mortgage costs. A first Base Rate cut for over four years, together with the new political certainty, could set the scene for a positive Autumn market, with improved affordability and a more confident outlook in the second half of the year.”

Below is an example of the national average asking price over the past three months.