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Rightmove’s monthly survey showed that 34% of UK homes are now seeing a reduction in price during marketing. In data that goes back to 2012, this figure has only been higher at this time of year in 2023, and a two-speed market is becoming more evident.
The overall average time to find a buyer is 62 days, with the high number of homes for sale allowing buyers the time to make their choice and negotiate.
The Bank of England’s third interest rate cut this year, which came on 7 August, is likely to be another boost of confidence for the market over the remaining months of the year, the property website said.
Colleen Babcock, property expert at Rightmove, said:
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.
Introduction: Stocks and oil rise before Ukraine meeting in Washington, UK house prices fall in August
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Financial markets are focused on meetings at the Oval Office in Washington between Donald Trump and European leaders including Keir Starmer, Emmanuel Macron, Friedrich Merz, and Volodymyr Zelenskyy.
After meeting with Vladimir Putin in Alaska on Friday, Trump has put pressure on the Ukrainian president to agree to a quick settlement, saying he could end the war “almost immediately” if he wanted to. The US president also ruled out allowing Ukraine to join Nato or retake Russian-occupied Crimea as part of negotiations with Moscow.
Brent crude, the global benchmark for oil, has gained 0.5% to $66.16 a barrel while gold ahs risen by 0.4% to $3,348 an ounce.
Asian shares have got off to a good start to the week and European and US futures are also up, after Wall Street stocks traded near record highs last week on expectations of an interest rate cut at the Federal Reserve’s September meeting, perhaps even a half-point reduction under political pressure from the White House.
Attention now turns to Fed chair Jerome Powell’s appearance at the Jackson Hole symposium this week, starting on Thursday. Last week’s inflation data were mixed, with the consumer prices index showing limited price pressures while the producer prices index surprised higher.
In Europe, stock markets extended gains last week to their highest levels since March, before Trump’s tariff announcements.
The Shanghai exchange rose by nearly 0.7% towards a 10-year high, the Shenzhen market in China jumped 1.38% and India’s Nifty 50 rose by 1.2%, snapping a downtrend that began in late June amid tense US–India trade talks.
“Hope over fears,” says Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Both nations would welcome any truce between Russia and the West, given their desire to maintain ties with both camps. European and US futures are also firmer.
The yen is softer, while gold demand remains strong — showing investors are cautious ahead of Trump’s meeting with Zelensky. Material progress could spark further oil weakness, a rally across equities, and softer gold demand. Disappointment would bring oil bulls back, pressure equities (except defense), and lift gold.
Turning to the UK housing market, savvy summer sellers, pricing realistically, have driven the best July for sales agreed since 2020, with prices falling again in August, according to the property website Rightmove.
Lower asking prices and good buyer choice are boosting sales activity, and the number of sales being agreed is now 8% ahead of this time last year. The number of homes for sales is 10% up on this time last year.
The average price of a property coming to the market for sale dropped by a seasonal 1.3% to £368,740 in August, in line with the 10-year average, following bigger-than-usual declines in June and July. With many people on holiday, prices usually fall in August.
The Agenda
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10am BST: Eurozone trade for June
