HOUSE THAT
Map reveals exact locations where house asking prices FELL this month as buyers wait for interest rate cut
Watch our video to find out how you can get the best mortgage deal
THE average price tag on a home dipped by more than usual this month, a property website has revealed.
The fall has been driven by home buyers' reluctance to move ahead of a potential cut to the Bank of England base rate in August.
1
Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges, particularly for first-time buyers.
The fall has also coincided with sellers trying to capture the attention of buyers with tempting prices ahead of the summer holidays and the Olympics.
Of course, Rightmove's data is only based on asking prices and the eventual price a property is sold for may well differ.
Across Britain, the typical new seller asking price fell by 0.4% or £1,617 month-on-month in July.
READ MORE IN MONEY
The average price tag fell to £373,493 down from £375,110 in June, Rightmove said.
This was a bigger drop than the typical fall seen in July as sellers try to capture the attention of buyers with a more tempting price heading into the thick of the summer holidays and the Olympics.
But it's a mixed picture across the UK, with some regions seeing a decrease in house prices, while others have seen a rise.
In England, the biggest monthly fall was seen in the South East, where the average asking price fell by -2%.
Most read in Money
In Yorkshire and The Humber, the average asking price in July in the region was £252,153 - down -0.7% on last month.
The West Midlands recorded a monthly fall of -0.6%, with the average price tag standing at £293,846.
Scotland recorded the steepest monthly fall of 0.9%, Rightmove revealed.
Best schemes for first-time buyers
But not all areas saw house prices fall.
The East of England saw the biggest monthly increase in house prices.
The average price tag in the region now stands at £424,262 following a 1% rise.
House prices also rose in the North West and East Midlands.
Try our interactive map below to find out the average house price in your region and the average annual increases.
The number of sales being agreed and new sellers coming to market is higher than a year ago, Rightmove said.
Home-movers have been dealing with more diversions than normal at this time of year, having just come through the distractions of the General Election campaign and the Euro football tournament.
But prices remain stable overall at 0.4% higher than a year ago.
What could happen to house prices in the future?
Property values are likely to rise modestly through this year, the property website said.
Tim Bannister, director of property science at Rightmove said: "We’ve now got the political certainty of a new Government with a large majority, which we expect will help home mover confidence.
"It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the Government is keen to get going with its manifesto pledges."
Plus, a potential Bank of England (BoE) interest rate cut in August could also prompt more activity in the housing market.
Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges, particularly for first-time buyers.
In some signs of relief for borrowers, lenders including Halifax, HSBC UK, Barclays, Santander, NatWest and Yorkshire Building Society have been chopping their mortgage rates this week.
Some 1.6 million mortgages are coming off fixed rates this year, according to UK Finance.
Tim from Rightmove said: "A base rate cut is expected to lead to lower mortgage rates, which could be the game changer for some would-be home movers who are being held back by significantly higher monthly mortgage costs.
“The average five-year fixed rate is still nearly twice as high as it was before the first of 14 consecutive Bank of England rate increases in 2021, with rates staying elevated for much longer than many thought that they would.
“A first base rate cut for over four years, together with the new political certainty, could set the scene for a positive autumn market, with improved affordability and a more confident outlook in the second half of the year."
How to save for your first home
HAVE you ever wondered how first-time buyers manage to go from savers to homeowners?
Getting a foot on the property ladder might seem like a daunting task, but The Sun's My First Home feature allows you to find out exactly what it takes to finally get the keys to your own place.
Leanne Gem managed to buy her £456,000 four-bed house with an "underrated scheme";.
Karis Jacobs and her husband George used the 50/50 method to buy their first home just two years after losing their jobs.
Parents Chae and Cem used a "DIY Help to Buy scheme" to buy their £466,000 first home.
Anupam and his wife Shrabanti lost £6,000 free cash when buying their first home - here's how you can avoid it.
Who tracks house prices?
There are several different house price trackers, all of which measure something slightly different.
The official measure comes from the Office for National Statistics (ONS), which examines the prices homes have actually sold for after they are registered on the Land Register.
The organisation's latest figures showed that the average UK house price increased by 1.1% in the year to April.
This is the most accurate of all the indices, but the figures come out three months after the homes are sold, so there's a big time lag.
Some lenders and property websites also publish monthly indexes, tracking the average prices of homes on which they provide mortgages.
Nationwide said the the average house price nudged up 0.2% in June.
The modest monthly growth leaves the average price of a house in the UK at £266,064, the index by Nationwide Building Society showed, up 1.5% on the same time last year.
According to Rightmove's latest index, average price of property coming to the market for sale dropped by £21 to £375,110 in June.
READ MORE SUN STORIES
Meanwhile, Zoopla's June figures showed that house sales increased for the fifth month in a row in May.
While they do adjust their figures to iron out big outliers, both lenders measure average house prices based on the properties they see.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
Topics