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.

Month

Avg. asking price

Monthly charge

Annual charge

July 2024

£373,493

-0.4%

+0.4%

June 2024

£375,110

-0.0%

+0.6%

May 2024

£375,131

+0.8%

+0.6%

Recent posts

Cotswolds   Web Larger

Forbes has published a global ranking of stunning locations and one popular picturesque corner of the UK has nabbed top spot.

Budget Then And Now   Web Larger

Over three years after the Mini-Budget took place, we look at what the mortgage market looks like now, showing the difference in mortgage repayments.

Home buying shake up web larger

The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”

More borrowers ER web larger

Almost one in five equity release mortgages are now taken out to provide financial support to family.

Buyers purchasing sooner web larger

According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.

First payment higher web larger

It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.

Change locks web larger

Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?

Autumn budget predictions web larger

The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.