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A major contributing factor to this fall is the declining property values in and around London.
Rising competition among sellers has made it difficult for prices to grow
The United Kingdom is currently witnessing a notable dip in listed property prices. According to Rightmove, a leading property website, July has seen the steepest decline in asking prices for homes in over 20 years. This unexpected downturn has caused disappointment among many sellers, particularly those involved in the construction and sale of new homes.
In its latest report published on July 21, Rightmove revealed that average asking prices have fallen by 1.2%, or approximately £4,531, compared to the previous month. This drop brings the average home price down to £373,709 in July. While a seasonal decline in prices is typical during this period of the year, this year’s drop has broken all previous records for the month dating back two decades.
A major contributing factor to this fall is the declining property values in and around London, where prices have dropped by 1.5% month-on-month. In contrast, the North East of England has shown resilience, recording a 1.2% month-on-month increase in asking prices. These regional variations have offered a reality check to sellers, many of whom are now adjusting their expectations.
Experts suggest that a key reason for the price correction in London could be the increase in stamp duty implemented in April. In addition, rising competition among sellers has made it difficult for prices to grow, especially in saturated urban markets.
Despite the negative headlines, some industry professionals view this trend more as a market “reset” than a collapse. Ranald Mitchell, director at Charwin Mortgages, told the Daily Mail, “This is not a crash, it’s a reality check. Sellers can no longer name their price and expect the market to play along.”
Interestingly, less expensive regions are currently showing stronger price growth compared to larger, more expensive urban centres. One silver lining in this downturn is the increase in buyer activity. With revised pricing, more buyers are finding homes affordable. Moreover, Rightmove notes that falling mortgage rates, along with anticipated cuts in the Bank of England’s base rate, could lead to a more favourable second half of the year for sellers.
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London, United Kingdom (UK)
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