Rightmove: As sellers price homes more competitively during the summer dip, asking prices dropped 1 point and three percent in August

A third of all properties have seen price reductions, and in August, the average asking price for a property in the UK dropped to £368,740

As prices continue their summer decline, asking prices for UK real estate have decreased for the third consecutive month from July to August, falling by 4,969 (1 point3 percent).

New research from Rightmove indicates that the average asking price for a home going up for sale is currently 368,740, which is only 0.3 percent higher than it was in August 2024 and much slower than inflation.

Summer sellers have been lowering the asking prices of their properties to draw in more buyers during a time when most people are more interested in vacationing than in looking for a home, which has caused the decline.

Although the August dip this year is consistent with the ten-year average, the summer dip in 2025 has been somewhat more severe overall because of larger price drops in June and July than in prior years.

In an attempt to attract buyers in a market with more options, Rightmove discovered that 34% of all homes on the market have had their asking prices reduced this August. Additionally, there are 10% more homes on the market now than there were at this time last year.

Now, it takes an average of 62 days for sellers to find a buyer; however, if the property does not require a price reduction, this time drops to just 32 days, as opposed to 99 days if it does.

Another factor contributing to the rise in transactions is competitive pricing. July saw the most completed sales since 2020 as a result of decreased home prices, which made it an excellent time to purchase a home.

"Shrewd summer sellers have read the market and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers," said Colleen Babcock, a property expert at Rightmove.

She went on to say that consumers today are taking advantage of prices that are, on average, 10,000 less expensive than they were three months ago.

Babcock stated, "An alluring price is essential to agree a sale because buyers have the upper hand in this high-supply market."

The number of sales agreed upon during the entire month of July was the highest for this time of year since 2020, demonstrating the effectiveness of the strategy. The market had just reopened following the initial pandemic lockdown at that point, and significant stamp duty reductions had just been announced.

The property market will benefit from declining interest rates.

The Bank of England's decision to lower interest rates to 4 percent on August 7 is expected to further boost the real estate market, which is already seeing a five-year high in sales.

Additionally, affordability will be strengthened as mortgage rates decrease in tandem with base rate reductions. Average two-year fixed mortgage rates are currently 4.49 percent, down from 5.17 percent at this time last year, which translates into an average monthly savings of about £117, according to Rightmove's daily tracker.

As a fourth cut to the base rate has grown less certain, Rightmove anticipates a few more minor mortgage rate reductions over the coming weeks but no significant drops.

A third base rate cut was a good thing, but "the supporting commentary from the Bank of England suggests the opportunity for further cuts has narrowed," according to Matt Smith, a mortgage expert at Rightmove.

"To stay competitive, lenders have lowered their rates, but if current market projections hold true, it doesn't appear that there will be many more reductions," he continued.

Although Smith stated that he does not believe "this would play out across the market and would likely target specific segments of movers," lenders may reduce rates in order to obtain a competitive edge.

He came to the conclusion that "overall, I think it's likely rates will remain pretty much flat from here, with only small movements up or down," as more data was released and outside events occurred.

Where is the greatest decline in asking prices occurring?

Between July and August, the average asking price decreased in all regions of Wales, Scotland, and England.

London saw the biggest price decline, as has been the case for a few months, with asking prices there down 2 points since last month and 1 point since last year.

The generally wealthy borough of Richmond upon Thames has been hardest hit by this price decline, with average asking prices falling 4.7 percent since last month to 965,679, although they are still up 4.8 percent for the year.

London's asking prices have been steadily declining, but at 666,983, homes in the capital are still, on average, far more expensive than those in other parts of the nation.

The South East and South West saw monthly declines of -1.4 and -1.8 percent, respectively, in average asking prices, and both regions' asking prices are now lower than they were a year ago.

Although prices are still up 1 percent for the year, prices in the North East, which had the largest asking price growth of 1 percent last month, dropped 1 percent in August to 194,799 dollars.

Wales was the only region in the nation where asking prices did not significantly decline; at an average of 270,880 per month, they were up 3% annually.