Key facts
- Average asking prices for newly listed homes in the UK fell by 2% in August, the largest drop for the month in eight years.
- The Royal Borough of Kensington and Chelsea saw new asking prices decrease by approximately £95,000 in one month.
- London recorded the steepest regional price drop, with a 4.4% decrease in new asking prices.
- Buy-to-let investors' share of home purchases rose to 14.1% in July.
- Over 56% of investor offers in July were at least 10% below the initial asking price.
Asking prices for newly listed homes in the UK's most affluent borough have seen a significant drop of nearly £100,000 in one month, signaling a cooling housing market. Data from the property website Rightmove indicates that nationally, average newly listed asking prices fell by 2% in August, the largest decrease for that month in eight years.
This national trend masks regional disparities, with London experiencing the most substantial decline at 4.4%, equating to almost £30,000 off new asking prices. Specifically, the Royal Borough of Kensington and Chelsea saw its average new asking price fall from £1,648,148 to £1,552,970, a reduction of just over £95,000. Rightmove attributes this to fierce competition among sellers, as the number of available homes for sale in London is at a 16-year high.
Further data from estate agent Hamptons highlights how buy-to-let investors are leveraging the weaker market. In July, landlords accounted for 14.1% of all home purchases, up from the year-to-date average of 12.4%. These investors are reportedly driving hard bargains, with the average landlord buyer paying 88.7% of the initial asking price. More than half of investor offers in July were at least 10% below the seller's asking price, the highest figure since April 2020. For leasehold properties, 41% of such lowball offers were accepted.
Other recent surveys also point to a subdued market. The Royal Institution of Chartered Surveyors reported that the UK housing market remained weak in July. Lenders Lloyds and Nationwide indicated that house prices were largely stagnant or saw minimal growth last month, with higher mortgage rates and economic pressures impacting affordability.