UK Average Asking House Prices Fall 1.2% July, Steepest Drop in 20 Years

In July 2025, the average asking price for newly listed homes across Britain fell by 1.2%, marking the steepest July price drop in over 20 years, according to property site Rightmove. This decline, amounting to about £4,531, is attributed to a high supply of homes—the highest in a decade—and the end of temporary stamp duty cuts, especially affecting London where prices dropped by up to 2.1% in inner areas. Despite the price fall, the number of agreed sales rose by 5% year-on-year, supported by improved affordability as mortgage rates declined to an average two-year fixed rate of 4.53%, down from 5.34% the previous year, and wages grew over 5%. Rightmove lowered its forecast for 2025 house price growth from 4% to 2% due to intense competition among sellers, yet it expects around 1.15 million property transactions this year. Experts emphasize that pricing remains crucial in this competitive market, with buyers quick to spot overpriced homes amid abundant choices, while falling mortgage rates and expected future base rate cuts contribute to a cautiously optimistic outlook for the housing market's second half of 2025.