The average asking price for a property in the UK has dropped slightly this month, with experts predicting an uptick in the autumn.

The average price for a property coming onto the market is now £373,493, a drop of 0.4% or £1,617 compared to June, Rightmove reports.

This is being put down to sellers trying to attract buyers during the busy summer holiday period. This drop is bigger than the average July drop of 0.2% seen over the last 20 years.

What’s happening in the housing market right now?

The good news is that the housing market has remained steady despite the recent general election.

Here are the key facts:

• The number of sales agreed is 15% higher than this time last year.
• The number of new sellers putting their properties on the market is also up 3% on last year.
• Buyer demand is stable overall but is down slightly (2%) for first-time buyers.

This suggests that people are getting on with their house moves despite the wider economic picture.

Interest rate cut could be a “gamechanger”

One of the main concerns for buyers is the high mortgage interest rates. Many had put their moving plans on hold hoping that interest rates would fall.

However, there are now growing hopes that the Bank of England could cut interest rates as early as August or September this year.

This would be welcome news for buyers as it would mean cheaper monthly mortgage payments. The recent election result and new government has also given the market a sense of stability.

Tim Bannister, from Rightmove, said: “A base rate cut is expected to lead to lower mortgage rates, which could be the gamechanger for some would-be home-movers who are being held back by significantly higher monthly mortgage costs.”

What does this mean for house prices?

The combination of political certainty and the prospect of lower interest rates could lead to a busy autumn for the housing market.

Rightmove’s data shows that the average five-year fixed-rate mortgage is currently 4.97%. While this is lower than the peak of 6.11% seen in July 2023, it is still much higher than the 2.51% recorded in July 2021.

Matt Nicol, from estate agents Nicol & Co, said that there was a feeling of optimism in the market.

“We’re experiencing healthy supply and demand levels… With CPI inflation down to 2% and potential base rate reductions ahead, the outlook remains optimistic,” he explained.

This all points to a more positive outlook for the housing market in the second half of the year.