Average UK House Price Fall Is Greatest In 20 Years

The average price of homes coming up for sale dropped by the largest monthly amount in more than 20 years in July, after the end of temporary cuts to stamp duty, and recent increases in council tax on second homes.

The average price being asked by new sellers fell by 1.2%, or £4,531, in July compared with a month earlier, to £373,709.

While there is usually a seasonal dip in house prices in July, at the start of the traditional summer holiday season, this month’s fall is the largest monthly price drop recorded by Rightmove since its index began in 2002.

Property price rises are also being constrained by the amount of properties up for sale, which has reached the highest level in a decade, the website found, adding that homeowners who want to sell during the summer have to work harder to attract potential buyers’ attention than during the spring.

“What’s most important to remember in this market is that the price is key to selling,” said Colleen Babcock, a property expert at Rightmove.

“The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area.”

The highest number of falls in asking prices from new sellers was in London, where they dropped by 1.5% compared with a month earlier, and slid by 2.1% in inner London.