Property asking prices fell for the first time this year in August, according to Rightmove, despite mortgage rates falling over recent weeks.
The average newly-listed home for sale fell in price by 1.5 per cent, an average of £5,708.
However, the fall is in line with what’s normal at this time of year, according to the property website.
It said newly listed asking prices have fallen every August for the past 18 years, due to the slower holiday season.
It means the average property on the market is now on sale for £367,785, although they typically sell for less with the average property sale price sitting at just over £289,000 according to the latest data from Halifax.
August dip: Asking prices usually fall in the summer months to to the quieter market
While asking prices are dipping, sellers who are coming to market during this traditionally slow time of year may find there is slightly more interest than they bargained for.
The Bank of England cut the base rate for the first time in over four years on 1 August and this has led to cuts in mortgage rates, with Nationwide, HSBC, Halifax and Barclays all reducing theirs.
Since the start of July the lowest five-year fixed rate has gone from 4.28 per cent to 3.83 per cent and the lowest two-year fix has fallen from 4.68 per cent to 4.22 per cent.
Rightmove says the number of potential buyers contacting estate agents to view homes for sale is up 11 per cent on last month and up 19 per cent compared to August last year.
The property website expects that lower mortgage rates and renewed buyer demand will feed through to higher asking prices later this year.
At the start of the year, Rightmove forecast that asking prices would finish the year 1 per cent lower. Now it is suggesting prices will be up 1 per cent.
Tim Bannister, director of property science at Rightmove said: ‘The fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment.
‘As the summer holiday season comes to an end, the conditions are there for a more active autumn market.
‘The reaction from home-movers to what is hopefully only the first of several rate cuts over the next year or two, combined with other positive data and trends, has led us to raise our price prediction for the year.
‘We now expect new seller prices to rise marginally by 1 per cent over the whole of 2024.’
It had previously predicted that asking prices would fall by 1 per cent.
Down: August’s fall is the first time asking prices have fallen since December 2023
Where are house prices rising?
House prices have continued to edge up over the course of this year.
The latest ONS figures showed the average home rose in value for the fifth consecutive month in June with the typical property now worth £8,000 more than it did this time last year.
However, much depends on where in the country homes are located as well as the types of homes available.
For example, in the 12 months to June, Northern Ireland has seen sold prices rise by 6.4 per cent on average, while in Scotland house prices are up 4.3 per cent.
Meanwhile, England and Wales have recorded more modest house price growth of 2.4 per cent and 1.8 per cent year-on-year respectively.
The type of property also has a bearing on house prices. For example, semi-detached homes are up 4 per cent over the past 12 months, rising from £269,998 to £280,895.
However, the average price of a flat or maisonette has only risen by 0.5 per cent during that time.
There are similar regional variances when it comes to newly listed asking prices as well, according to the Rightmove data.
New listed asking prices in the North East, North West and in Yorkshire and Humber are all up by 3 per cent or more compared to August last year.
However, asking prices in the East of England, South West and South East are all recording lower newly listed asking prices now than 12 months ago.
Regional variation: Asking prices are rising year-on-year in northern parts of the UK, however in some areas of the south they are lower than 12 months ago
Gary Hamilton, founder of Bohome Estate Agents in Hamilton in Scotland said: ‘July was a strong month for us, reflecting the resilience of our market.
‘We’ve seen a mix of outcomes, with some properties achieving well above the expected price whereas others sold closer to it.
‘With schools returning and routines normalising, we expect activity to pick up further in the coming weeks.’
Gareth Overton, head of residential sales at Henry Adams estate agents, which operate across Sussex, Surrey and Hampshire in England also expects things to pick up during the autumn.
‘The Bank of England base rate appears to have had a positive impact on home-mover sentiment,’ said Overton.
‘In areas such as Chichester, Midhurst and Bognor Regis, the current sales market is particularly active and we have seen a noticeable increase in enquiries from downsizers across the board.
‘While August is generally a slightly quieter month due to the holiday season, the market continues to show resilience and is ticking over steadily.’
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