UK house sellers cut asking price by average £10,000

Homes are selling for an average of £10,000 below asking price as sellers try to secure a sale in a buyers’ market.

The average price of a newly listed home fell by 1.3% in August to £368,740, a £4,969 decline. Sellers have now lowered asking prices by over £10,000 since May, a figure Rightmove (RMV.L) analysts said reflects growing pricing realism amid elevated levels of market inventory and a more cautious buyer base.

“Savvy summer sellers have read the room,” said Colleen Babcock, property expert at Rightmove (RMV.L). “[They] are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers. The strategy is working.”

The property site said that despite broader price moderation, buyer demand remains robust, supported by improving affordability and a slight cooling in mortgage rates.

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Rightmove’s (RMV.L) daily mortgage tracker shows that the average two-year fixed mortgage rate has fallen to 4.49%, down from 5.17% a year earlier. For a typical homebuyer with a 20% deposit and a 30-year mortgage, this translates to a monthly saving of approximately £117.

The Bank of England’s decision to cut the base rate for a third time this year has contributed to this trend, boosting sentiment in the housing market. However, the closer-than-expected vote among policymakers has cast some doubt over whether a fourth cut will follow before the end of 2025.

“It was positive to see last week’s third base rate cut of the year, but the supporting commentary from the Bank of England suggests the opportunity for further cuts has narrowed,” said Matt Smith, mortgage expert at Rightmove (RMV.L). “Overall, with further data to be released and external events to play out, I think it’s likely rates will remain pretty much flat from here, with only small movements up or down.”

While the number of homes for sale is 10% higher than last year, new listings are growing at a more modest pace, up just 4% year-on-year.

According to Rightmove (RMV.L), the number of sales agreed last month was 8% higher than at the same point in 2024, marking the most active July since 2020’s lockdown-driven surge.

The figures also revealed a two-speed market. While competitively priced homes continue to transact swiftly, others remain stagnant. Around 34% of properties currently on the market have undergone at least one price reduction, a proportion only exceeded last year, when market uncertainty peaked.

Rightmove (RMV.L) data shows that homes priced correctly from the outset typically find a buyer in just 32 days. In contrast, properties that require a price cut take an average of 99 days to secure a sale, more than triple the time.