As part of an unexpected turn in the UK property market, the asking prices of property have now fallen by 1.3 per cent in August, which is according to historical patterns in the UK that have shown a seasonal deterioration but have pointed to the existence of buyer utopia as the sales have been soaring. The average new seller asking price has fallen by 1.3 per cent, or 4,969 to 368,740, in the last Rightmove House Price index.
This monthly dip, although perhaps anticipated in the summer holiday downturn period, follows some bigger-than-usual falls in June and July, sparked by a combination of supply growth and the spike in dealer selling prices evident during the last two months of the financial quarter leading into Autumn. The dip aside, annual prices have nudged up by a small 0.3% indicating an encouraging but timid market.
This is attributed to the high-supply environment, where the supply of properties on the market to buy has increased by 10 per cent compared to the previous year. This excess enables buyers to hold more bargaining power, and 34 per cent of properties are facing price decreases when on the market, which is also the second-highest since the data collection began in 2012.
The proportion is higher only in 2023, reinforcing the two-speed market and forcing sellers to face the facts by the over-optimistic sellers. It now takes the average 62 days to find a buyer, but those that are priced competitively to sell at the outset reach an agreement in 32 days, as opposed to 99 days to compromise the price.
Seasonal Price Dip In Competitive Pricing
The decrease in prices in August aligns with the seasonal pattern, where during the summer, people’s priority is vacation over house hunting, resulting in a drop in demand. But smart sellers are reacting by establishing more sensible opening prices to come out in a flooded environment. Such an approach is finally paying dividends, as reduced asking prices have increased buyer interest and have put buyers who are ready to buy in a great position.
A recent interest rate cut by the Bank of England, the third in the year, has further boosted the market sentiments, reducing the average two-year fixed mortgage rate to 4.49 percent compared to 5.17 percent year on year. This advance in affordability can save purchasers more than $100 every month in typical house financing, infusing optimism amid financial jitters.
Selling is in Full Swing
The healthy price growth in transactions offsets the price softness. The most significant number of sales to be agreed in the month since pre-lockdown markets were booming during 2020, with stamp duty concessions and a stampede to bigger homes, was decided in July 2025. The choice and competitive pricing have led sales to perform 8 percent ahead of the previous year.
Such an activity is an indication of a recovery that is picking up speed. However, there are buyers who are still apprehensive about the possibility of tax increases in the next budget. The high supply of homes continues to sit at a decade-peak, has dampened price appreciation but given buyers muscle to score bargains.
Insight and Market Readings Expert
Colleen Babcock, Rightmove property expert, explained the significance of bargain pricing: “The smart sellers have their heads well and truly in the sand and are showing even more competitive pricing than is customary in the summer season to genuinely help themselves to be noticed and snapped-up by focused and active buyers. During this high-supply market, buyers are commanding the upper hand, and thus an appealing price is essential to settle a sale.”
She observed that the cut rate reduction will facilitate no significant decline in mortgages but will favor sentiment. Babcock continued that robust summer transactions and consistent demand are a positive sign going into fall, which, historically, is the period when volume rises as the families nest and refresh after vacations and strive to make the Christmas move.
Prospects of the Housing Market
As we move into the autumn, prospects within the UK property sector seem set to intensify further, helped by further rate cuts and buyer confidence that is beginning to rise too. Nonetheless, the sellers should be cautious of the lesson about realistic pricing so as not to cause lengthy cookie listings.
The market continues to be dual track with lower-end, first-time property purchases decreasing 0.5 per cent to 226,297, and high-end property prices decreasing by 2.1 per cent to 672,668. Analysts caution that momentum may be affected by outside variables, such as budget announcements. Still, existing trends tend toward a balanced recovery on the part of ready buyers and flexible sellers.
