Property costs are solely anticipated to extend by solely 2% this 12 months, down from 4%, after Rightmove revised its prediction.
The annual progress price at present sits at simply 0.1%, whereas costs fell previously month, tempering expectations.
Nevertheless, Rightmove stated there’s sturdy purchaser exercise, whereas any additional cuts to the Financial institution of England base price may cheapen up mortgages, fuelling extra demand.
This 12 months there’s been a decade-high provide of houses in the marketplace, which is limiting home value progress.
Colleen Babcock, property skilled at Rightmove, stated: “It’s been a promising first half of the 12 months for exercise ranges, significantly when you think about that some may have introduced their plans ahead to attempt to keep away from added stamp responsibility from April.
“Even after the stamp responsibility deadline, we’re seeing extra gross sales being agreed and extra new potential consumers getting into the market than on the identical time final 12 months.
“Nonetheless, the knock-on impact of excessive purchaser selection is slower value progress, so we’re revising down our prediction of how a lot the asking value of a house will improve over the entire of the 12 months.
“Looking forward to the second half of 2025, there’ll nonetheless very doubtless be the standard quieter seasonal durations across the summer time holidays and Christmas, however we count on market exercise to proceed to be resilient.
“Crucially, purchaser affordability is on the right track, and one other two Financial institution Price cuts earlier than 2026 could be a giant increase to this.”
This month the value of property coming to market dropped by -1.2%, bringing the common value all the way down to ÂŁ373,709, suggesting we’re in a consumers’ market.
London is the most important regional driver of recent vendor asking value falls this month (-1.5%), led by Internal London (-2.1%).
Babcock added: “We’re seeing an fascinating dynamic between pricing and exercise ranges proper now.
“The wholesome and bettering stage of property gross sales being agreed exhibits us that there are motivated consumers on the market who’re prepared to finalise a deal for the suitable property. What’s most necessary to recollect on this market is that the value is vital to promoting.
“The last decade-high stage of purchaser selection signifies that discerning consumers can rapidly spot when a house seems to be over-priced in comparison with the numerous others that could be obtainable of their space.
“It seems that extra new sellers are aware of this and are responding to this high-supply market with stand-out pricing to entice consumers and get their residence offered.”
