Summer sales surge as interest rate cut boosts market confidence

Agreed sales hit their highest July level in five years, as lower prices drove an 8% jump in activity, according to Rightmove.

Its House Price Index reveals the number of homes for sale is now 10% up on this time last year, muting the annual price increase to just 0.3%.

The property portal says the Bank of England’s third interest rate cut of the year has helped buyer optimism.

Savvy summer sellers have read the room

According to Rightmove’s House Price Index, the average price of property coming to the market for sale has dropped by a seasonal 1.3% (-£4,969) this month to £368,740.

August’s price drop is in line with the ten-year average following the bigger than usual falls in June and July.

The average new seller asking price for a home has now fallen by just over £10,000 (-£10,777) this summer, as savvy summer sellers price competitively to stand out and attract a buyer.

Rightmove says this has contributed to the highest number of sales agreed in the full month of July since 2020.

Colleen Babcock, property expert at Rightmove, said: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.

“Astute buyers are now benefitting from new seller asking prices which are on average an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high- supply market, so a tempting price is vital to agree a sale.

“The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020. At that time, the market had recently re-opened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.

“However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.”

Good for market sentiment

Rightmove says the property market has welcomed the Bank of England’s interest rate cut to 4%, which it expects will give the market a confidence boost in the remaining months of the year.

Ms Babcock adds: “Strong summer property sales as well as a stable level of new buyer demand bode well for the next couple of months.

“We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home. Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale.

“An active autumn will certainly be helped by the recent third interest rate cut of 2025 by the Bank of England. While we don’t expect the cut itself to spark major mortgage rate drops, it’s good for market sentiment and buyer optimism.”