The UK housing market saw a significant dip in asking prices this July, with newly listed homes experiencing their largest monthly fall for the time of year in over two decades, according to
property website Rightmove.
Data covering the period from June 8 to July 12 revealed a 1.2% drop in asking prices for new property listings compared to the previous month — the steepest June-to-July decline since Rightmove began tracking the figures in 2001. Year-on-year, prices were only 0.1% higher.
Rightmove attributed the decline to increased competition among sellers, as the number of available homes remains at a ten-year high. “Sellers are pricing more competitively this summer to draw in buyers,” the company noted.
Earlier this year, UK property sales surged, boosted by a temporary tax break. However, activity cooled sharply after the incentive ended in April. “Buyers today are savvy and can easily tell when a property is overpriced, especially with more choice on the market,” said Rightmove property expert Colleen Babcock.
Despite a moderate 5% increase in sales volume compared to 2024, Rightmove revised its 2025 forecast for price growth down to 2% from a previous 4%, citing intensifying competition among sellers. The site still expects around 1.15 million property transactions next year.
Regionally, inner London experienced the sharpest monthly price drop at 2.1%, while northeast England bucked the trend with a 1.2% increase.
Other market indicators also suggest cooling. Nationwide, the UK’s second-largest mortgage lender, reported a 0.8% fall in house prices in June — the biggest monthly drop since November 2022. Meanwhile, official data showed annual price growth slowed to 3.9% in May, down from 7.0% in March.
Still, Rightmove noted some positives: smaller price increases, combined with falling mortgage rates and strong wage growth, are gradually improving affordability. Average two-year fixed mortgage rates have fallen to 4.53% from 5.34% over the past year, while wages rose by 5.0% in the 12 months to May.