Average asking prices for newly listed homes in the UK have seen a notable decline this month. According to figures released by Rightmove, prices have fallen by 1.2%, which translates to an average monetary drop of £4,531 across new seller listings.
This kind of reduction is not entirely unexpected during the summer months, as it is typically a quieter period for the property market. However, what makes this news stand out is the scale of the drop. It is, in fact, the largest price fall recorded by Rightmove for the month of July in over two decades of tracking housing data.
A key factor contributing to this decrease is the sustained high level of property supply. There are currently more homes for sale than we’ve seen in recent years, and this abundance of choice is making it harder for sellers to command premium prices. Buyers are spoiled for options and are likely to take their time, waiting for deals that offer better value.
Another major influence on buyer activity is the arrival of the summer holiday season. Families often shift their focus towards travel, childcare, or time off work, and this distraction tends to slow down the property market temporarily. As a result, sellers who list their homes during this period must work harder to gain attention and prompt viewings.
Spring is usually considered the peak season for home sales, where enthusiasm and demand run high. In contrast, summer sellers face a more reluctant and distracted buyer pool, making strong marketing and competitive pricing even more crucial during this time of year.
Despite the headline-grabbing price fall, Rightmove is urging sellers and buyers alike not to panic. In their latest statement, they explained that while price drops of this magnitude have previously been associated with weakening markets, today’s context is different. The current situation reflects strategic pricing rather than a broad market slowdown.
Rightmove suggests that the drop may actually be beneficial to the market. More reasonable prices are improving affordability, encouraging a new wave of buyers to make enquiries. In fact, they have observed growth in the number of sales being agreed year-on-year, which suggests continued demand despite price adjustments.
The platform also took the opportunity to advise sellers on the importance of getting their pricing right from the outset. In a market saturated with listings, homes that are priced too optimistically run the risk of being overlooked. Buyers today are more informed and are comparing dozens of listings at once.
As such, Rightmove has revised its property price growth forecast for 2025. Originally, they had predicted a 4% increase, but the latest figures and buyer trends have led them to lower this forecast to a more modest 2%. This change reflects the reality of a market where supply is outpacing demand and affordability remains a key concern for buyers.
Encouragingly, the broader market outlook is still positive. Rightmove notes that mortgage rates are gradually easing, and the Bank of England is expected to implement at least two more base rate cuts within the next year. These financial changes could help stimulate the market further as we move into the latter part of 2025.
Colleen Babcock, a spokesperson for Rightmove, spoke about the current dynamics between asking prices and buyer activity. She highlighted that despite falling prices, there is still a healthy level of interest from serious buyers who are ready to proceed if they find a property that meets both their needs and their budget.
She also pointed out that pricing is becoming more and more central to a successful sale. Buyers are very quick to notice when a home is listed above market value, especially with so many comparable options available online. A home that’s overpriced can quickly fall down the ranks on property websites and lose visibility.
Many new sellers appear to be recognising this shift. They are increasingly listing their properties at prices that are intended to stand out in a crowded market, rather than starting high and making reductions later. This proactive pricing strategy is helping more sellers attract interest and close deals quickly.
In this high-supply environment, it’s clear that sellers must be realistic and strategic. Simply putting a home on the market isn’t enough – it needs to be priced correctly, presented well, and marketed effectively to rise above the competition and draw in motivated buyers.
Ultimately, the message from Rightmove is that while the dip in prices might raise eyebrows, it is actually part of a healthier and more balanced market. Buyers have more choice, sellers are becoming more competitive, and affordability is slowly improving – all of which are signs of a property market that is adapting rather than declining.
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