{"id":26733,"date":"2025-09-05T15:14:08","date_gmt":"2025-09-05T14:14:08","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=26733"},"modified":"2025-12-01T06:09:48","modified_gmt":"2025-12-01T06:09:48","slug":"uk-property-prices-drop-interest-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/london-property-market\/uk-property-prices-drop-interest-rate-cuts\/","title":{"rendered":"Further price drops and interest rate cuts boost buyer activity"},"content":{"rendered":"

After reporting a 1.2% price drop in July, Rightmove reported a further 1.3% (-\u00a34,969) 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 \u00a310,000. Similarly, the average property price in the capital has dropped by 4.9% from nearly \u00a3702,000 at the start of June to just under \u00a3667,000 in August.<\/p>\n

Buyers make the move as housing stock improves<\/h2>\n

\"London<\/p>\n

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%.<\/p>\n

Third interest rate cut this year makes borrowing more affordable<\/h2>\n

The Bank of England (BoE) slashed interest rates for the third time this year, taking its base rate to 4% in August<\/a>. 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 \u00a3117 per month on repayments.<\/p>\n