August 2025 | Rightmove House Price Index
House prices have dipped this summer, but sales remain strong. With more homes on the market and lower mortgage rates, buyers and sellers are still getting deals done.
As we move through August, the housing market is showing its usual summer price dip. But behind the headlines, sales are holding strong. With more homes now available and buyers having plenty of choice, sellers who set the right asking price are the ones getting results.
Rightmove’s latest House Price Index shows that while prices are down slightly, buyer demand is still there. If you’re planning a move, now could be a good time to act before the busier autumn market.
Asking Prices Fall, But Sales Stay Strong
The average asking price has dropped by 1.3% in August to £368,740, a fall of nearly £5,000. This follows similar price drops in June and July and matches the usual summer slowdown.
Even so, sales agreed in July were up 8% compared to last year. It was the best July for agreed sales since 2020, when the market surged after lockdown.
This shows that buyers are still motivated, especially when homes are priced sensibly.
More Homes for Sale = More Competition
There are now 10% more homes for sale than this time last year, giving buyers more choice. For sellers, that means more competition.
It’s a mixed picture:
- Homes priced fairly are selling within about 32 days.
- Homes that are overpriced can take around 99 days, often needing a reduction before finding a buyer.
In fact, 34% of homes on the market have already been reduced, one of the highest levels in over ten years. Setting the right price from the start is key.
Lower Mortgage Rates Are Helping Buyers
The Bank of England has cut interest rates for the third time this year, helping improve affordability. The average two-year fixed mortgage rate is now 4.49%, down from 5.17% a year ago.
This is giving buyers more confidence, but there is some uncertainty about whether we’ll see another cut before the end of the year.
What This Means for You
The market is active, but competitive. Sellers who price their homes realistically are securing buyers more quickly. Buyers, on the other hand, are benefitting from more choice and lower mortgage rates.
All the information in this update comes from Rightmove’s House Price Index. Click here to read the full report.
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