Asking prices for property new to the housing market dropped 0.4% this month, the latest Rightmove HPI reveals.

The HPI reports that average prices fell £1,617 to nearly £373,500, which was a bigger reduction than usual in July.

The General Election and the Euros football may have had an effect on the market, Rightmove says.

Resilient

However, the market has still remained fairly resilient with the number of sales agreed 15% above the same period a year ago, when mortgage rates were approaching their peak.

And the number of new sellers coming to market is 3% above the same time in 2023.

Buyer demand remains stable overall, but there’s a slight drop of 2% in demand among first-time buyers.

Rate cut

Current expectations are that the first Bank of England Base Rate cut may be as soon as August or September, which will give the market a boost.

The average five-year fixed rate is now 4.97%, which is below the peak of 6.11% in July last year, but is still much higher than the average of 2.51% in July 2021.

One area of the market in need of more support is first-time buyers.”

Tim Bannister, Director of Property Science at Rightmove, says:  “We’ve now got the political certainty of a new government with a large majority, which we expect will help home-mover confidence.

“One area of the market in need of more support is first-time buyers, many of whom have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.”

Matt Nicol, MD at Nicol & Co in Worcestershire, says: “The new government’s focus on maintaining low taxes, inflation, and mortgage rates, along with plans to improve the planning system and unlock much-needed housing development, was positive news”.