UK Home Prices Drop as Buyers Hold Out for BoE Rate Cut, Reveals Rightmove

Rightmove reports a decrease in asking prices for UK homes as buyers anticipate a potential rate cut by the Bank of England. Stay informed on the latest UK real estate market trends.

Asking prices for British homes have seen a decline this month, according to a survey from property website Rightmove. The average asking price for properties put on sale between June 9 to July 6 was 373,493 pounds ($484,943), which is 0.4% lower than the previous month. This drop in asking prices is larger than usual for this time of year. However, compared to a year ago, asking prices are still 0.4% higher.

The housing market in the UK has been showing signs of slowing momentum, as expectations for a Bank of England (BoE) rate cut have been pushed back due to strong wage growth and cost pressures. Investors are currently giving a 50% chance of a rate cut on Aug. 1, pending the release of wages and inflation data later this week.

The recent election on July 4, which resulted in a victory for Keir Starmer's Labour Party, has brought some certainty to the market. The new Labour government has promised to increase house-building, particularly focusing on affordable housing. This could have a positive impact on UK housing market sentiment.

The potential for a cut in the BoE's Bank Rate is seen as a "game-changer" by Rightmove. Affordability has been a key issue in the UK housing market, with house prices rising by around 20% since the last election in December 2019.

The housing market in the UK is facing uncertainties as buyers wait for potential interest rate cuts from the Bank of England. The outcome of the recent election and the promises made by the new Labour government will likely have an impact on the housing market sentiment in the coming months.