Why Are House Prices in Southern England and London dropping so fast?
A surge in supply, coupled with buyers’ sensitivity to higher borrowing costs, is putting significant downward pressure on prices.
• According to Rightmove, the average asking price in June 2025 fell by 0.3%, while newly listed sellers in July cut their asking prices by 1.2% — an unusually weak performance for the summer period. These declines are concentrated in higher-value regions such as Southern England and London.
• The key driver is a substantial increase in housing choice: the number of properties for sale is up about 14% compared with the same period last year, with London seeing an even larger rise of 16–19%. Buyers are no longer rushing to outbid competitors, instead using their improved bargaining power to negotiate lower prices, forcing sellers to cut to attract interest.
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