RightMove cuts home price forecasts, property listing rate reaches ten years
Rightmove is half the market, with high temperatures in the market and increasing competition among sellers, cutting its 2025 home price forecast in half.
The UK’s largest real estate portal is currently expected to see an average price drop of 2% this year from the previous forecast of 4%.
According to the company’s latest data, the number of homes for sale has reached its highest point since 2015, with sellers catching attention in an increasingly crowded market. RightMove said the result is a downward pressure on prices as suppliers reduce expectations of avoiding neglect.
The average asking price fell 1.2% in July, while it fell to £373,709 in June. While the seasonal decline this time of year is a typical decline, RightMove noted that the decline was the steepest decline recorded in July in more than two decades. Now, the asking price is only 0.1% higher than the summer of 2024.
Colleen Babcock, head of marketing for Rightmove, said: “The choice of picky buyers to choose from level ranks compared to many other homes that may be available in their area is that when the home looks high, picky buyers can quickly discover it. It seems that more new sellers are aware of this and are responding to the outstanding buyers with the outstanding buyers to greet and sell to their homes.”
Real estate agents on the ground responded to this view. Phillip Bishop, managing director of Perry Bishop at Cirencester, added: “Buyers have significant real estate options and availability, which leaves them uncompromising in terms of their standards and expectations.”
While demanding prices are down in most areas, in central London, the highest monthly decline is the highest, with an average price drop of 2.1%. Rightmove said the recent stamp duty rate could have a greater impact on the capital, which remains the most expensive area to buy a home. Additional uncertainty over proposed changes to non-tax rules could also curb investment in major London real estate.
By contrast, more affordable regions are still seeing moderate growth. In northeast England, demand prices rose by 1.2%, highlighting regional differences in the housing market.
Despite slowing price growth, there are still signs of re-activity. RightMove reported that agreed sales volume increased by 5% compared to last year, while buyer inquiries increased by 6%. The rise is backed by a drop in mortgage rates, with an average two-year fixed transaction dropping from 5.34% last summer to 4.53% today, which equates to a typical new mortgage saving of nearly £150 a month.
Babcock is still cautiously optimistic. “We’re seeing more sales than the same period last year, with more new potential buyers entering the market. Still, the ripple effect of high buyer choices is slower price growth, so we’re revising our forecast.”
While price momentum may be lowered for the rest of the year, the combination of increased affordability, stable demand and expected lower interest rates can still provide some support to the UK housing market as 2025 progresses.
