Asking prices for homes across the UK slipped in the four weeks to mid-August, but the decline was smaller than in recent months—and sales activity actually surged to a five-year high in July,

according to property website Rightmove.

The data, released Monday, showed that average asking prices between July 13 and August 9 fell by 1.3%. That’s in line with the typical summer slowdown, when many buyers and sellers put property plans on hold for holidays. By contrast, the previous two months saw unusually steep drops.

On an annual basis, prices were marginally higher—up 0.3% compared with the same time last year.

Rightmove’s property expert, Colleen Babcock, said competition among sellers remains strong, with many cutting prices to secure deals. In fact, one-third of homes on the market had their prices reduced—the second-highest level for this time of year since records began in 2012.

Even so, July stood out for activity. The number of sales agreed was the highest for that month since 2020, when the pandemic and tax incentives spurred a rush for bigger homes. Still, the stock of properties for sale continued to rise, hitting its highest level in over a decade.

Interest rates could also be shaping buyer sentiment. The Bank of England cut rates again earlier this month—the fifth cut since August 2024. While mortgage costs may not fall much further, the move could give buyers more confidence. Average two-year fixed mortgage rates are now at 4.49%, down from 5.17% a year ago.

But not all signs are rosy. Just last week, the Royal Institution of Chartered Surveyors warned that the housing market recovery slowed sharply in July. Some buyers, it noted, are also holding back amid uncertainty over possible tax rises in Chancellor Rachel Reeves’ upcoming budget.