According to Rightmove, asking prices for homes experienced a significant drop of 1.2% (£4,531) between June and July, marking the largest decrease for this period since their records began in 2001. The average property price is now £373,709. Inner London saw the sharpest regional decline, with prices falling by 2.1% monthly. This trend aligns with recent data from Nationwide, which also indicated that house prices have been under pressure.

Earlier in the year, there was a surge in sales as buyers aimed to complete purchases before the temporary stamp duty tax cut deadline. However, since April, demand has decreased, leading to the emergence of a buyers’ market. The combination of strong housing supply and reduced demand is compelling sellers to lower asking prices to attract sales.

Despite the Bank of England’s trend towards lowering interest rates, borrowing costs remain elevated, with the base rate at 4.25%. Recent economic indicators, including GDP, inflation, and unemployment, suggest a sluggish economic outlook. Nevertheless, the central bank is anticipated to cut interest rates twice before the end of the year, which could stimulate mortgage demand into next year.