A sharper-than-usual decline in asking prices has reinforced the importance of realistic pricing in today’s housing market, with the latest Rightmove House Price Index suggesting buyers remain highly price-sensitive despite healthy levels of available stock.
While the seasonal slowdown has contributed to a 1% fall in asking prices during July, market conditions continue to favour sellers who price competitively from the outset.
According to recent figures, correctly priced homes are securing buyers significantly faster than those requiring price reductions, highlighting a growing divide between realistic valuations and over-ambitious pricing.
Against a backdrop of elevated housing supply and a more competitive sales environment, industry experts say investors are increasingly well positioned to negotiate favourable deals while keeping a close eye on future government housing policy.
“July’s 1% fall in asking prices is far sharper than we’d typically expect for this time of year. Rightmove’s data shows the average July dip over the past decade has been just 0.2%, but for investors, the more significant figure sits beneath the headline. Three-quarters of homes that sold this year did so without a price reduction, while those that needed to cut their asking price spent an average of 127 days on the market, compared with just 36 days for homes that were priced correctly from the outset. The market is rewarding realistic pricing and exposing unrealistic expectations.
That gap is a clear reflection of how price-sensitive buyers have become, and it’s creating a more favourable buying environment for investors. Stock remains close to a 12-year high for the time of year and sellers are having to compete harder for buyers – that’s putting negotiating power back into investors’ hands. While sales agreed are below last year’s levels, they’ve remained in line with 2024, despite a more competitive market, suggesting activity is cooling, rather than stalling.
Ultimately, this is a market where buying well matters more than trying to time the market. Investors will also be watching closely to see whether Andy Burnham’s new government can bring forward meaningful progress on housing supply, planning reform and affordability. Greater certainty around these areas would help strengthen confidence in the market over the longer term. The investors who focus on securing well-priced properties in areas with proven rental demand and long-term growth potential will continue to be well placed, regardless of short-term fluctuations.”
Jennifer Lawler, Sales Director at Elite Realty Invest
