Homes across the UK are now selling for an average of £10,000 below the asking price, as sellers adapt to a more cautious buyers’ market. Many are cutting prices to secure sales, highlighting the shift in power towards buyers in today’s housing climate.
Newly listed homes also saw a drop in value during August, with the average price falling by 1.3% to £368,740 – a decrease of nearly £5,000 in just one month. Since May, sellers have collectively reduced asking prices by more than £10,000, a move analysts at Rightmove say reflects growing realism among vendors as stock levels rise and buyers take a more careful approach.
Property experts suggest that sellers are becoming increasingly strategic. Colleen Babcock of Rightmove explained that many are now adopting sharper pricing tactics to stand out. According to her, “savvy summer sellers” have recognised the need to be more competitive, and the evidence shows the approach is helping attract committed buyers.
Despite the wider trend of price moderation, demand from buyers has not disappeared. In fact, interest remains steady, boosted by an improvement in affordability and a modest easing in mortgage costs. This shift has kept the market active, even while headline prices soften.
Rightmove’s daily mortgage tracker shows that borrowing costs have come down compared with last year. The average two-year fixed mortgage now stands at 4.49%, down from 5.17% in 2024. For a buyer with a 20% deposit taking out a 30-year loan, this reduction equates to a saving of around £117 each month, which is significant for household budgets.
The recent changes in mortgage rates have been partly driven by the Bank of England, which cut its base rate for the third time this year. This has offered some reassurance to both buyers and sellers, although uncertainty lingers. A closer-than-expected vote by policymakers has cast doubt on whether another cut will be delivered before the year ends.
Matt Smith, a mortgage expert at Rightmove, noted that while the third rate cut was a positive sign, the central bank’s comments suggest future reductions may be limited. He added that, with new data and global factors still in play, mortgage rates are likely to remain relatively stable in the coming months, with only minor fluctuations up or down.
Meanwhile, more homes are being put up for sale. Rightmove reported that stock levels are 10% higher than this time last year, although the pace of new listings has slowed, rising just 4% year-on-year. This means buyers now have more choice, but not at the rapid rate seen previously.
Sales activity has also been encouraging. The number of deals agreed last month was up by 8% compared with July 2024, making it the busiest July since the post-lockdown surge of 2020. This suggests that, despite headwinds, buyers and sellers are still transacting at strong levels.
That said, the market remains split. Properties priced competitively from the outset are selling quickly, while those listed too high are struggling. Data shows that 34% of homes currently on the market have undergone at least one price reduction, a level only beaten last year when market uncertainty was at its peak.
Homes that are realistically priced are finding buyers in an average of 32 days, whereas overpriced properties that later see cuts are taking 99 days to sell – more than three times longer. This underlines how crucial correct pricing has become in the current climate.
In London, activity has been surprisingly strong during the summer. Amy Reynolds, head of sales at Antony Roberts in Richmond, said first-time buyers have been particularly active, alongside families looking for homes in school catchment areas. Well-presented properties in these prime locations continue to attract significant interest.
Reynolds added that while stamp duty remains a concern at the higher end of the market, the desire for more space is keeping demand alive. Buyers appear willing to absorb additional costs if it means securing a home that fits their long-term needs, especially in popular neighbourhoods.
Outside the capital, resilience is also being seen. In Yorkshire and the Humber, estate agent Steve Beercock reported strong performance in the mid- to high-end markets, as well as among landlords seeking buy-to-let opportunities. He highlighted that the Bank of England’s latest rate cut is already encouraging more enquiries, both from buyers and investors.
Looking ahead, many agents expect the market to remain active into autumn. With the school year starting and Christmas deadlines looming, both sellers and buyers are motivated to move. However, national price growth is still expected to be modest. Rightmove forecasts house prices will rise by only around 2% across 2025, suggesting that while activity may stay strong, affordability pressures will keep values in check.
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