Average UK property price falls 1.3% in August – Rightmove

According to Rightmove House price index- the largest monthly sample of residential property prices and housing market activity- the average price of property coming to the market for sale dropped by 1.3% (-£4,969) this month to £368,740. This is in line with the ten-year average following the bigger than usual falls in June & July.

Hamza Behzad, Business Development Director, Finova says:

“Today’s data may reflect a slight dip in overall activity, but the market is keeping its footing on uncertain terrain. Many lenders were already ‘pricing in’ a cut ahead of the Bank of England’s slashing of the base rate, and this has created a real opportunity. Right now, the average two-year mortgage rate has fallen below 4.99% – the first time it has sunk under 5% since September 2022.  As mortgage availability ramps up and the homeowners close on their remortgage deals, the groundwork is set for a healthy spell of activity in one of the UK’s most resilient investment sectors.

Nonetheless, we must keep an eye on the bigger picture. Like any market, the UK property sector is influenced by wider geopolitical events, which are by nature hard to predict. And affordability is still a major hurdle. It is important that lenders have the right tech to both respond to these global changes at pace and the flexibility to provide innovative products – such as shared joint ownership – to first-time buyers who may otherwise struggle to step onto the ladder. Lenders are innovative by nature, but our sector must keep pushing forward.”