Further price drops and interest rate cuts boost buyer activity

After reporting a 1.2% price drop in July, Rightmove reported a further 1.3% (-£4,969) fall in the average price of a UK property coming up for sale in August, taking the cumulative drop in average house prices this summer to just over £10,000. Similarly, the average property price in the capital has dropped by 4.9% from nearly £702,000 at the start of June to just under £667,000 in August.

Buyers make the move as housing stock improves

Savvy buyers and property investors waiting for prices to correct have begun making offers, as the number of sales agreed upon was 8% higher than in August last year. Along with bigger discounts and better prices, buyers also have more options this summer, as the number of homes for sale is up by 10% from last year, with an annual inflation in prices at just 0.3%.

Third interest rate cut this year makes borrowing more affordable

The Bank of England (BoE) slashed interest rates for the third time this year, taking its base rate to 4% in August. This recent rate cut marked the fifth consecutive decline after rates peaked at 5.25% in autumn 2023 and remained there until last summer. According to Rightmove, with the average two-year fixed mortgage rate now 4.49%, compared to 5.17% a year ago, homebuyers with a 20% deposit and a 30-year loan term are saving at least £117 per month on repayments.

Accurately priced homes are selling faster in a buyer’s market

According to Zoopla’s latest report, every two in five homes listed for sale in the first half of 2025 went on to sell, with 75% of sales not requiring a price reduction. On average, homes that need a price reduction take up to 2.4 times longer to sell than those that are correctly priced from the start. With September marking the start of the busy autumn season, sellers with the correct pricing can achieve a quicker sale.

Economic growth slows as production drops

According to the Office for National Statistics (ONS), overall economic growth in the UK decreased from
0.7% in Q1 to 0.3% in Q2. This drop was mainly due to a decline in production. However, the construction and services sectors, which help build and sell houses, grew by 1.2% and 0.4%, respectively.

With stamp duty relaxations having ended in March, tax collection in Q2 improved. Zoopla reports that 83% of homeowners paid SDLT, up from 49% before April 2025. The increased cost is approximately £2,500 per sale, and 41% of first-time purchasers now pay tax, up from 20% before the changes to the tax rules.

UK and UAE properties showcased in Hong Kong

Following the successful launch of The Broadley in central London’s sought-after Marylebone district, our office in Hong Kong hosted a series of one-on-one property consultations and seminars to guide investors looking to buy properties in the UK and UAE.

New-build houses and townhouses across London showcased in Malaysia

Our office in Malaysia introduced a range of stylish new-build houses and townhouses across desirable London neighbourhoods, including Greenwich, Hendon, Southall, Harringay, and more. Next up, they will host an exclusive event to showcase some of the top new schemes located near different Elizabeth Line stations, ranging from Abbey Wood in the South East of London to Southall in the West.

Exciting new developments for Singapore and Indian investors

With the ‘student season’ looming large in London, investors in Singapore and India have an opportunity to capitalise by investing in new property development across the UK capital. While our offices in Delhi and Mumbai hosted exclusive showcases of new Berkeley projects in Kennington, West Ham, White City, Wembley, and Canary Wharf, our Singapore office is launching Wandsworth Common this September.

Positive growth amidst a slight slowdown in rental inflation

While the ONS reported a growth of 5.9% in average rents across the UK during the 12 months to July 2025, rents in the capital grew at 6.3%, reaching an average of £2,250. Although the availability of new rental listings is 15% higher than a year ago, it remains 29% lower than pre-pandemic levels, as there are up to 11 tenant enquiries per available unit at present.

Renters’ Rights Bill on the cusp of becoming law

While both houses of Parliament undergo a final round of scrutiny and amendments this September, the most significant changes to landlord and tenant rights in the UK are close to receiving Royal Assent and becoming law later this year. With Section 21 evictions set to be abolished and the end of fixed-term tenancies, what lies ahead for London landlords?

You can catch up on all the reforms and updates by reading our detailed guide or watching our exclusive webinar that decodes and explains everything about this upcoming law.

With 21 London branches and 14 international offices, Benham and Reeves brings the latest London properties to homebuyers and investors from around the world. We also offer a complete one-stop
property management and lettings service to help you diversify your portfolio and maximise ROI. Contact us if you are looking to buy, sell or let your London property.