The UK property market remained fairly quiet in July, with buyers continuing to be cautious and house price growth slowing. However, people are still buying and selling homes, and the picture can look very different depending on where you live.
For anyone thinking about moving, July’s figures suggest a fairly simple message: buyers may have more choice, while sellers may need to think carefully about how they price their property.
Here’s what happened in July and what it could mean for your move.
House prices are still growing, but slowly
July’s property market updates show that house prices remained relatively steady.
Nationwide reported that the average UK property price was £277,542 in July, with prices increasing by just 0.1% compared with the previous month. Annual house price growth also slowed from 2.2% in June to 1.8% in July.
Zoopla’s figures also point towards slower price growth. Its July House Price Index reported annual UK house price growth of 1.3%, with the average home increasing in value by around £3,400 over the year.
Importantly, the property market isn’t moving at the same pace across the country. Zoopla identified Warrington, Hull and Dundee as some of the stronger-performing areas, while places such as Bath, Oxford and Harrow have experienced quieter market conditions.
What does this mean for you?
If you’re selling: local market conditions are important. Looking at the prices of similar properties that have recently sold in your area could give you a better idea of what buyers may be willing to pay.
If you’re buying: slower national house price growth doesn’t mean prices are falling everywhere. It’s worth researching the particular area you’re interested in rather than relying on national headlines alone.
Buyers have more choice
Reports show that more properties are now available across many parts of the country, giving buyers a wider choice of homes. This increased supply is also creating more competition between sellers. According to Zoopla, nearly a third of properties listed since the second quarter were still awaiting a buyer without a reduction in asking price.
For sellers, this means setting a realistic asking price from the beginning could be particularly important.
Buyers are being more cautious
Although people are still looking to move, July’s figures suggest many buyers are approaching the market carefully.
Zoopla reported that sales agreed were 9% lower than a year earlier, with higher mortgage rates and uncertainty contributing to a quieter market.
Other market data tells a similar story, with property professionals reporting that buyer enquiries and agreed sales remained subdued during July.
Rather than buyers disappearing from the market, people looking for a home may simply be taking more time over their decisions and thinking carefully about what they’re willing to pay.
Is it becoming a buyers’ market?
In some parts of the country, more homes being available for sale, combined with slower price growth and cautious demand, could give buyers more opportunity to negotiate, particularly if a property has been on the market for some time.
However, location makes a big difference, with figures from the Royal Institution of Chartered Surveyors (RICS) showing weaker price trends in London, the South East and South West, while reports from Northern Ireland continued to show rising prices.
Desirable properties in stronger local markets could therefore still attract plenty of interest.
What should sellers take from July’s market?
Selling in a quieter market doesn’t mean you can’t find a buyer. But getting the price right is increasingly important.
Well-priced homes are still selling, even in areas where activity is lower. Sellers who set an asking price that reflects their local market conditions may be better placed to benefit from a potential increase in activity during the autumn.
For sellers, this makes preparation important. It could be useful to speak to your estate agent about similar properties that have actually sold nearby, rather than focusing only on the asking prices of homes currently on the market.
What happens next?
Looking ahead to autumn, buyer activity could begin to pick up from September if mortgage rates remain broadly stable. Zoopla expects house price growth to slow further, moving towards around 1% by the end of the year.
Thinking about buying or selling a home?
July’s property figures show that the market may be moving at a slower pace, but people are still moving.
For buyers, having more properties available could create opportunities to take your time, and compare homes.
For sellers, realistic pricing and good preparation could help your property stand out in a competitive market.
And once you’ve found the right property or accepted an offer, having your conveyancer ready means you can start moving through the legal stages of your transaction.
