Prime Highlights:
- The UK housing market saw its busiest July for sales since 2020, driven by sellers adjusting prices to attract buyers.
- Homes priced competitively are selling much faster, with some properties selling in just 32 days on average.
Key Facts:
- Asking prices for new properties dropped 1.3% in August to an average of £368,740, with the average home losing over £10,000 in value over the summer.
- The average two-year fixed mortgage rate is now 4.49%, down from 5.17% last year, following three Bank of England rate cuts.
Key Background
The UK housing market had its busiest July for sales since 2020, with sellers cutting prices to draw in buyers amid the current economic conditions. According to Rightmove, agreed sales last month were 8% higher than the same period last year, driven by increased housing supply and more competitive pricing from vendors.
Asking prices for new homes dropped 1.3% in August to an average of £368,740, following normal seasonal trends after larger falls in June and July. Rightmove describes the market as a “two-speed” environment, with homes priced competitively selling within 32 days on average, while those requiring a price reduction take around 99 days.
Tim Bannister, Rightmove’s property expert, said that smart buyers are taking advantage of asking prices that are about £10,000 lower than three months ago, helping July achieve the highest sales since 2020.
The market is also benefiting from better mortgage rates. The average two-year fixed mortgage rate is now 4.49%, lower than 5.17% last year, after three rate cuts by the Bank of England this year. It is still not clear whether further cuts will be made before the end of the year, but the fact that the rates have lowered is making it easier for buyers to obtain property.
About one in three sellers is lowering their prices while marketing their homes, showing that setting a realistic price is key to selling quickly. Homes with the right initial price sell much quicker than those that have to be reduced later.
With economic issues, reduced costs, affordable and cheap housing loans, as well as the availability of houses on sale, the process of buying and selling houses is simplified. Price drops have made some homes more affordable for first-time buyers.
The trends also show that there is a stable housing market, which may come as an opportunity for both buyers and sellers to make informed decisions and act at the right time. The industry in question is the property market of the UK, which is regaining its vitality and confidence through the right pricing and mortgage opportunities.
