Asking prices for newly advertised British houses and apartments fell in the four weeks to mid-August but the drop was less notable than in the previous two months and sales in July were their highest for the time of year since 2020 according to a survey out this morning
Property website Rightmove said on Monday prices for homes put on sale between July 13 and August 9 dropped by 1.3% from the previous four weeks, in line with the normal mid-summer fall in prices.
The first Bank of England rate cut for four years has led to an immediate upturn in buyer activity said the report
The distractions of school summer holidays traditionally bring a dip in prices, as some buyers put their home-moving plans on hold to enjoy holidays or time with family. This also means that new sellers who do come to market at this quieter time of year may have a pressing need to sell, which means they tend to price more competitively.
However, summer sellers this year may find that there is a degree of buyer buzz around the market that was missing in the peak-mortgage-rate market at this time last year. As anticipated in Rightmove’s July report, the first Bank of England rate cut for four years at the start of the month has helped to accelerate mortgage rate drops and contributed significantly to improved buyer demand.
These better conditions are helping to set up a positive Autumn market, and a further spur to activity following the Bank Rate cut has led Rightmove to raise its 2024 forecast from a 1% drop over the whole of 2024 to a 1% rise in new seller asking prices.
Colleen Babcock, Rightmove’s property expert, said sellers were competing more on price. The number of sales agreed in July was the highest for the month since 2020 when demand for bigger homes was unleashed by the COVID-19 pandemic and government tax breaks.
