The average price tag on a home across Britain has tumbled by more than £10,000 over the summer, with a significant drop recorded in August alone, new data reveals.
Property website Rightmove reported that the average asking price for a home coming to market fell by 1.3%, or £4,969, month-on-month in August, settling at £368,740.
This August decline, while typical for the month over the past decade, follows more substantial falls in June and July. Overall, the average new seller asking price has now decreased by £10,777 this summer, down from £379,517 in May.
Rightmove said there is a “two-speed market” with savvy summer sellers pricing realistically to attract buyers, while others are pricing properties too high.
Just over a third (34%) of properties for sale are reduced in price, and since 2012 the figure has only been higher at this time of year in 2023, Rightmove said.
The overall average time to find a buyer is now 62 days, however it takes an average of 32 days to find a buyer if a property does not need a price reduction, versus 99 days if it does, according to the website’s analysis.
It said the number of sales being agreed is 8% ahead of this time last year as serious buyers and sellers lock in deals.
The number of homes for sale is 10% up compared with this time last year.
Colleen Babcock, a property expert at Rightmove, said: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.
“Astute buyers are now benefiting from new seller asking prices which are on average an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale.
“The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020.
“At that time, the market had recently reopened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.
“However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.”
The Bank of England’s recent base rate cut is likely to be another boost of confidence for the market over the remaining months of the year, Rightmove said.
Ms Babcock added: “Strong summer property sales as well as a stable level of new buyer demand bode well for the next couple of months. We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home.
“Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale.”
Matt Smith, Rightmove’s mortgages expert said: “The markets are currently forecasting one more (Bank of England base rate) cut before the end of the year.
“Lenders have moved their rates downwards to remain competitive, but there doesn’t look like much room for too many further reductions if current market forecasts play out.
“We could potentially see some lenders squeeze their margin to gain a competitive advantage, but I don’t think this would play out across the market and would likely target specific segments of movers.”
Steve Beercock, executive director at Beercocks in Yorkshire and the Humber, said: “Locally in Yorkshire and the Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors.”
Amy Reynolds, head of sales at Antony Roberts in London, said: “What’s surprised me most is the first-time buyer flat market in our area. It slowed after the stamp duty holiday ended but has now rebounded strongly.
“That said, there are still some well-priced homes sitting unsold, often because buyers are holding back. Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer holiday period and heading into the busier autumn. Those who hold back may see the property they like snapped up by someone else, so it’s always worth an inquiry to gauge the seller’s position.”
Mary-Lou Press, National Association of Estate Agents Propertymark president, said: “Despite recent changes regarding stamp duty, and the fact that there is still so much economic uncertainty, it is extremely positive to witness an uplift in sales being agreed alongside an increase in properties coming to the market.
“The performance of the property sector is a strong indicator of consumer confidence, and it has been reassuring to see base rate cuts across the past few months that have helped to create greater levels of affordability.”
