Property sellers across Britain have slashed asking prices by £4,531 in July, making it the steepest monthly drop for this time of year in over two decades.
Now, the typical home carries a price tag of £373,709, which is a 1.2 per cent jump down from rates in June.
This unprecedented July decline has come as intense competition arises amongst sellers, who are adjusting their expectations to capture buyer interest during the traditionally slower summer period.
The strategic pricing technique seems to be working, with property sales agreements maintaining healthy levels despite the challenging market conditions.
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|The July decline has been the sharpest for 20 years
Rightmove has consequently revised its annual price growth projection downward from 4 per cent to 2 per cent this year.
Regional variations have also emerged, with the North East recording a 1.2 per cent monthly price increase while London experienced a 1.5 per cent decline.
But inner London bore the brunt of the capital's downturn, with values dropping 2.1 per cent in a single month.
The April stamp duty changes have particularly affected London's higher-value properties, contributing to the capital's price weakness.
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But, for other regions, there's plenty to look forward to, with managing director at Perry Bishop in Cirencester Phillip Bishop reporting increased buyer registrations and viewing levels compared to last year.
He added: "The Cotswolds summer market can slow over the holidays, but we expect a second wave of serious buyer activity in the autumn, with serious motivated buyers wanting to agree their purchase."
To add to the overall good news, borrowing conditions have improved markedly, with typical two-year fixed mortgage rates dropping to 4.53 per cent from 5.34 per cent 12 months ago.
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|The Cotswolds are expecting 'serious buyer activity' this autumn
What's more, financial institutions have also relaxed their lending criteria, enabling certain borrowers to access larger loans than previously possible.
Market observers anticipate further relief for buyers, with expectations of two additional Bank of England base rate reductions before 2026. These projected cuts would substantially enhance affordability for prospective purchasers.
Weighing in, property expert at Rightmove Colleen Babcock said: "Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this."
"We're seeing an interesting dynamic between pricing and activity levels right now," she added. "The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property."