House prices record steepest July fall in more than two decades.
The latest data reveals encouraging news for the UK property market.
Asking prices saw a seasonal dip of 1.2% in July – the largest July drop in over two decades. While this headline figure may initially raise eyebrows, it actually signals a healthy and dynamic market where motivated buyers and realistic sellers are actively engaging.
One of the key takeaways is the strength of buyer demand. Despite falling prices, the number of sales agreed is up by 5% compared to this time last year, and buyer enquiries have increased by 6%. This suggests that competitively priced homes are attracting serious interest and prompting action, particularly as improved mortgage rates and higher average earnings boost affordability.
Rather than indicating market weakness, this price drop reflects a strategic shift. With more homes available for sale than in previous years, sellers are pricing competitively to stand out – and it's working. Homes that are priced realistically from the outset are far more likely to secure a sale without needing later reductions.
Regional variation also paints a positive picture. While London saw the sharpest decline, driven largely by Inner London, more affordable areas like the North East recorded a 1.2% increase in asking prices – continuing the trend of growth in lower-priced regions.
For buyers, the current market offers more choice and greater negotiation power. For sellers, it’s a timely reminder that setting the right price from day one is key.
Overall, this shift signals a maturing market – one where fair pricing and strong demand are fuelling steady, sustainable activity. With over one million transactions still expected in 2025, the outlook remains positive for those ready to make their move.
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