July 2025 | Rightmove House Price Index
In July, average asking prices dropped by 1.2% to £373,709 as more homes hit the market, giving buyers more choice. Despite this, demand remains strong with sales up 5% and mortgage rates falling to 4.53%. Sellers need to price competitively to stand out and attract serious interest in a busy summer market.
As we move through July, the property market remains active, but sellers are starting to feel the pressure. With more homes on the market and buyers having plenty of choice, pricing your home correctly is more important than ever.
Rightmove’s latest House Price Index shows asking prices are down, but buyer activity is still strong. If you're planning to move, this could be a good time to act.
Asking Prices Fall, But Buyers Are Still Active
The average asking price has dropped by 1.2% this month to £373,709, a fall of £4,531. This is the largest monthly drop so far this year, though prices are still slightly up (0.1%) compared to this time last year.
In areas like London, prices have fallen even more, especially in Inner London which dropped by 2.1%.
More Homes for Sale Means More Competition
There are now more homes for sale than at any time in the last 10 years. This gives buyers more choice, but it also means sellers need to be realistic with their pricing.
Homes that are priced correctly from the start are the ones attracting the most attention. Overpricing can lead to your home sitting on the market and needing a price reduction later on. Our Avocado agents can help you get your pricing strategy right.
Buyer Demand Is Growing
Even with prices falling, the market is still moving. Sales agreed are 5% higher than this time last year, and enquiries to estate agents are up by 6%.
This shows that buyers are out there and ready to act, especially if the home is priced fairly and marketed well.
Lower Mortgage Rates Are Helping Buyers
Mortgage rates are coming down, making it easier for people to afford to buy. The average two-year fixed mortgage rate is now 4.53%, down from 5.34% last year. This means lower monthly payments and improved affordability for many.
Experts are also expecting more interest rate cuts later this year, which could bring even more buyers into the market.
What This Means for You
The market is changing, but there are still good opportunities if you’re thinking about moving. Buyers have more choice, but homes that are priced fairly are still selling well. Lower mortgage rates are also making it easier for people to get moving.
All the information in this update comes from Rightmove’s House Price Index. Click here to read the full report.
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