- Average house prices are just 0.1% higher than a year earlier, according to the latest Lloyds House Price Index figures
- This is the slowest annual growth since the end of 2023
- Prices didn’t rise at all between June and July
- The average property cost £299,253
- What sellers can do
Sarah Coles, head of personal finance at AJ Bell, comments:
“House price movements have had all the ease and comfort of a ride with a learner driver recently, and after edging upwards in June, July saw them stall again. Sellers may be worried that we’re set for falls in the coming months, but they still have some options.
“Mortgage rates have been nudging upwards in recent weeks, which hasn’t helped bolster buyer enthusiasm. Meanwhile, global uncertainty coupled with domestic change makes people wary about making a major financial commitment. The jobs market is weighing on confidence too, with the unemployment rate at 4.9% – higher than last year – and vacancies falling again.
“When house price rises slow to a standstill it can raise concerns that a flat-lining market could tip over into a falling one. This has already happened in some areas of the south, so isn’t out of the question. In softer markets, sellers will need to work harder.
“This starts with pricing realistically, but also includes looking at your home with a more critical eye, and dealing with anything that could put buyers off. Your choice of estate agent matters more in a difficult market too, so ask about their approach to marketing and for evidence that they have had success in selling homes like yours. It’s worth getting all the paperwork in place too, so you can move fast once you get an offer.
“But what really moves the dial is flexibility over negotiations, and unfortunately flexibility often comes at a cost. You may need to accept a lower offer – which leaves you with gap to close if you’ve already made an offer on your new home. You might also need to rent for a period to break the chain, which can be expensive. Alternatively, if you throw in all the fixtures and fittings, you need to budget for new ones after the move.
“It means if you’re planning a move, it makes sense to build your savings to put yourself in a better position to roll with the punches in the property market. If your savings are sitting in a high street account offering you next to no interest, it’s worth switching them to an online bank or a cash savings hub too, which tend to offer better deals. Buying and selling is going to be hard work in a market like this, so make sure your savings safety net is working just as hard as you are.”
