According to the latest house price index data from Rightmove, average asking prices dropped by 0.4% to £373 in July, a fall of £1,617.
The drop is bigger than the 20-year July average of 0.2%, with sellers trying to create a more tempting price ahead of the summer holiday season, and with the Olympics coming up fast on the horizon.
Most buyers are moving ahead with their plans, although it is thought that some may be holding off for the Bank of England to announce a cut in interest rates.
Sales remain 15% above the same period last year, when mortgage rates were at their peak.
It is also worth noting that the number of new sellers coming to market is 3% above the same period last year.
Whilst there has been a 2% drop in registrations from first-time buyers, mostly due to affordability, buyer demand remains largely stable overall.
Rightmove Director of Property Science, Tim Bannister, says: “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.
He added: “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.”
Guy Gittins, CEO of Foxtons, 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.”
