Date published: 21 July, 2025

House Price Index - July 2025

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Price is key as sellers compete for buyers with big July price drop

  • The average price of property coming to the market for sale drops by 1.2% (-£4,531) this month to £373,709. With the number of available homes still at a decade-high level, summer sellers are pricing even more competitively to attract buyer interest:
    • London is the biggest regional driver of new seller asking price falls this month (-1.5%), led by Inner London (-2.1%)
  • Realistic and competitive pricing is key to selling, both improving buyer affordability and stimulating stronger buyer activity:
    • The number of sales being agreed is 5% higher than at this time last year
    • The number of potential future buyers contacting estate agents about homes for sale is 6% higher than last year
    • Average new seller asking prices are now just 0.1% higher than they were a year ago. With lower mortgage rates and average wage rises outstripping both house prices and inflation, overall buyer affordability continues to improve
  • Rightmove’s mortgage tracker shows that the average two-year fixed mortgage rate is 4.53%, compared with 5.34% at this time last year, a saving of nearly £150 per month on a typical new mortgage:
    • The markets are currently forecasting two more Bank Rate cuts this year, which would help to further stimulate activity
  • At the halfway point of the year, Rightmove is reducing its price forecast for 2025 from +4% to +2%, as the high level of seller competition is limiting price growth, and retaining its prediction of 1.15 million transactions this year

A large monthly price fall this July of 1.2%

Prices are now just 0.1% ahead of this time last year

Sales agreed now 5% higher than last year, helped by competitive pricing

National average asking price

Jul 2025

£373,709

Jun 2025
£378,240

MoM change
-1.2%

National average asking price by market sector (excluding inner London)

First time buyers
£227,466

MoM change
-0.6%

Second-steppers
£346,222

MoM change
-0.6%

Top of the ladder
£687,422

MoM change
-1.6%

“We’re seeing an interesting dynamic between pricing and activity levels right now. The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. What’s most important to remember in this market is that the price is key to selling.  The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area. It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.

“It’s been a promising first half of the year for activity levels, particularly when you consider that some will have brought their plans forward to try to avoid added stamp duty from April. Even after the stamp duty deadline, we’re seeing more sales being agreed and more new potential buyers entering the market than at the same time last year. Still, the knock-on effect of high buyer choice is slower price growth, so we’re revising down our prediction of how much the asking price of a home will increase over the whole of the year. Looking ahead to the second half of 2025, there will still very likely be the usual quieter seasonal periods around the summer holidays and Christmas, but we expect market activity to continue to be resilient. Crucially, buyer affordability is heading in the right direction, and another two Bank Rate cuts before 2026 would be a big boost to this.”

Colleen Babcock, property expert at Rightmove

Regional map

Hover over a GB region to see the results

East Midlands

Average price

£292,244

MoM change
+0.0%
YoY change
+0.6%
Average
days to find a buyer
64

East of England

Average price

£422,521

MoM change
-0.6%
YoY change
-0.4%
Average
days to find a buyer
62

London

Average price

£684,689

MoM change
-1.5%
YoY change
-1.1%
Average
days to find a buyer
64

North East

Average price

£196,844

MoM change
+1.2%
YoY change
+2.0%
Average
days to find a buyer
54

North West

Average price

£269,048

MoM change
-1.2%
YoY change
+1.8%
Average
days to find a buyer
59

Scotland

Average price

£199,590

MoM change
-0.4%
YoY change
+2.2%
Average
days to find a buyer
32

South East

Average price

£486,619

MoM change
-1.2%
YoY change
+0.2%
Average
days to find a buyer
65

South West

Average price

£387,436

MoM change
-1.1%
YoY change
-1.4%
Average
days to find a buyer
65

Wales

Average price

£270,901

MoM change
-0.5%
YoY change
+2.0%
Average
days to find a buyer
69

West Midlands

Average price

£297,038

MoM change
-1.0%
YoY change
+1.1%
Average
days to find a buyer
59

Yorkshire and The Humber

Average price

£258,607

MoM change
-0.1%
YoY change
+2.6%
Average
days to find a buyer
61
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Regional Map
Date Region Avg price MoM change YoY change Avg time on market
July 2025 Yorkshire and The Humber £258,607 -0.10% 2.60% 61 days
July 2025 West Midlands £297,038 -1.00% 1.10% 59 days
July 2025 Wales £270,901 -0.50% 2.00% 69 days
July 2025 South West £387,436 -1.10% -1.40% 65 days
July 2025 South East £486,619 -1.20% 0.20% 65 days