Rightmove’s recent data shows average asking prices fell by 1.2% between June and July – around £4,531 – the steepest monthly drop in two decades. Summer slowdowns aren’t unusual, but this one is sharper than most.

Buyers now have more choice than at any point in the last 10 years, which is good news for them – but less so for sellers, especially those planning to downsize in retirement and turn years of property growth into a financial cushion.

What’s behind the shift?

For much of the last decade, property prices only seemed to go one way – up. That changed when the Bank of England raised interest rates, pushing up mortgage costs and squeezing first-time buyers. Recent stamp duty increases have added more pressure.

London is showing early signs of strain – often a signal of what’s to come for the wider UK market. But here’s the twist: despite falling prices, sales are up 5% compared with last year. Buyers are still active, but they’re negotiating harder, and sellers are having to price competitively to get deals done.

Where the market might be heading

While 2025 has been tough for sellers, there are glimmers of optimism:

• Falling interest rates could make mortgages more affordable later this year.

• FCA mortgage reforms aim to improve affordability by loosening lending rules.

• The government’s plan to make the 95% mortgage guarantee scheme permanent could help more buyers with smaller deposits get on the ladder.

Savills even predicts prices could rise by up to 25% by 2029 if these changes bed in.

What this could mean for you

First-time buyers – Lower prices help, but the bigger challenge is still saving a deposit and meeting affordability checks. If reforms work, the gap may narrow – but it’s too soon to say how much.

Parents or grandparents helping out – Gifting or loaning a deposit can be a meaningful way to help, but it can also impact your own long-term finances and may have tax implications. Advice can help you structure support so it works for everyone.

Downsizers – Selling a home you’ve outgrown can free up significant capital. The key question is what you do with it. A lump sum can underpin your retirement plans, but without a clear strategy, it can be eroded faster than expected.

This is where our Own and Flourish services work together — helping you unlock property wealth and put it to work in a way that supports your goals.

Quick summary: The housing market may be in a tricky phase, but change creates opportunity – for buyers seeking value, sellers willing to adapt, and families planning how to make property wealth work for them.