The UK house asking price experienced its biggest monthly decrease since 2002 when it dropped 1.2% (£4,531) to £373,709 in July according to Rightmove data. The market faces increased pressure from sellers because temporary stamp duty cuts ended and second home owners must pay higher council taxes. The current price drop represents the biggest decrease since Rightmove started tracking the market in 2002.
Rightmove reports that the current housing market offers the highest number of available properties throughout the last decade which enables buyers to select from many options while forcing sellers to set competitive prices. The London real estate market experienced its largest price decrease of 1.5% across all areas and 2.1% in the inner city region. According to property expert Colleen Babcock buyers immediately identify overpriced homes in competitive markets because price remains the essential factor for successful sales.
The market shows a 5% increase in property sales throughout the year because lower mortgage rates and rising wages have made homes more affordable. Rightmove reduced its 2025 property price forecast to 2% growth from its initial 4% prediction. The market outlook for the second half of 2025 remains positive because mortgage rates have decreased to 4.53% for two-year fixes and interest rates are expected to decrease.
