The average price of a property in the UK coming to market for sale has fallen by 1.2% month-on-month in July, despite the number of available homes remaining at a decade-high level, Rightmove has found.

The firm’s latest house price index (HPI) revealed that the average price of a property for sale stood at £373,709 in July, which is an increase of 0.1% year-on-year.

Rightmove said that London was the biggest regional driver of new seller asking prices, after dropping by 1.5% between June and July, while Inner London saw an average asking price reduction of 2.1%.

Despite this drop, the real estate property portal revealed that the number of sales being agreed increased by 5% year-on-year, while the number of potential buyers contacting estate agents about homes for sale jumped by 6% in the same period.

Property expert at Rightmove, Colleen Babcock, said that the market is seeing an "interesting dynamic between pricing and activity levels".

She added: "The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. What’s most important to remember in this market is that the price is key to selling.

"The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area. It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold."

Rightmove’s latest HPI also found that the average two-year fixed mortgage rate fell from 5.34% to 4.53% between July 2024 and 2025, which equates to a saving of almost £150 per month on a typical new mortgage.

The firm added with the market forecasting two more base rate cuts by the Monetary Policy Committee this year, the market could be stimulated further.

Chief commercial officer at Together, Ryan Etchells, said that the latest drop in house prices confirms that it is currently a “buyer's market”.

He concluded: "What may have been interpreted as a blip following the increase in stamp duty in April could be a more prolonged period of subdued activity.

"While mortgage rates have reduced slightly in recent months, stubborn inflation and high stamp duty may well be holding back buyers, who are waiting to see what will happen to mortgage rates in the near future. All eyes will be on the next Bank of England interest rate decision next month, with many experts predicting a cut.

"However, subdued house prices may present an excellent opportunity for aspiring homebuyers, as well as landlords looking to grow their portfolios. Those keen to seize an opportunity and move forward with their property plans over the summer can consider the wide range of financial products available, like shared ownership mortgages or bridging loans for fast, flexible finance."

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