UK house asking prices have seen a 2% reduction in August, the most significant monthly fall for August since 2018. This decline is attributed to a 12-year high in the number of homes available for sale, providing buyers with increased options.
Rightmove reports that the average newly listed asking price dropped by £7,360, settling at £364,999. This contrasts with an average August decrease of 1.3% over the last decade. Overall, asking prices are now 1% lower than they were a year ago, representing the largest annual fall since December 2023.
Colleen Babcock, a property expert at Rightmove, stated that the larger-than-usual August price drop indicates sellers are acknowledging market realities and pricing more competitively. She added that buyers currently have the widest selection of homes in over a decade, making competitive pricing crucial for sellers.
While buyer demand has increased by 5% since Andy Burnham became Prime Minister on July 20, overall buying activity remains 10% below last year's levels. Jeremy Leaf, a north London estate agent, noted that confidence is affected by ongoing concerns about interest rates and inflation, alongside speculation regarding potential tax changes in the Budget.
Regionally, England's northern areas saw average new seller asking prices rise by 1.5% compared to last year, with the North West recording the largest annual increase at 1.9%. Conversely, prices across southern England fell by 1.8%, with London experiencing the biggest fall in Great Britain at 3.1%. The number of homes available for sale in London is at its highest level in 16 years.