Rightmove House Price Index Improves to -0.4% in July, Signaling UK Market Stabilization

The United Kingdom’s Rightmove House Price Index improved to -0.4% year-on-year in July 2025, up from a revised -0.5% in June, according to data released this week. The marginal improvement suggests the UK housing market may be approaching a period of stabilization after months of subdued activity and price declines.

What the Data Shows

The Rightmove House Price Index measures the change in average asking prices for properties listed on the platform across England, Scotland, and Wales. The year-on-year figure for July 2025 represents a 0.1 percentage point improvement from the previous month’s -0.5% reading. While still in negative territory, the narrowing decline indicates that sellers are gradually regaining pricing confidence, though the market remains under pressure from elevated mortgage rates and affordability constraints.

Broader Market Context

The slight uptick comes against a backdrop of persistent economic headwinds. The Bank of England’s base rate has remained at 5.25% since August 2023, keeping borrowing costs high for prospective homebuyers. Inflation, while easing, continues to outpace wage growth in many sectors, further squeezing household budgets. However, recent data from other sources, including Nationwide and Halifax, have shown a mixed picture, with some regions experiencing modest price growth while others continue to see declines.

Implications for Buyers and Sellers

For sellers, the data suggests that pricing strategy remains critical. While the overall trend is improving, overpricing could still lead to extended listing times or price reductions. For buyers, the continued decline in asking prices, albeit at a slower pace, may present opportunities to negotiate, particularly in regions with higher inventory levels. Mortgage brokers have noted that while rates remain elevated, competition among lenders has increased, with some offering more competitive deals to attract borrowers.

Regional Variations

The national index masks significant regional differences. Data from Rightmove’s regional breakdowns indicate that southern England, particularly London and the South East, has experienced sharper price corrections compared to northern regions and Scotland, where prices have held up relatively better. This divergence reflects variations in affordability, housing stock, and local economic conditions.

Conclusion

The improvement in the Rightmove House Price Index from -0.5% to -0.4% year-on-year in July 2025 is a modest but notable sign that the UK housing market may be bottoming out. However, the recovery remains fragile and uneven across regions. Policymakers, lenders, and market participants will be watching closely for further signs of stabilization in the coming months, particularly as the Bank of England considers future rate decisions.

FAQs

Q1: What is the Rightmove House Price Index?
The Rightmove House Price Index tracks the average asking prices of properties listed on Rightmove, the UK’s largest online real estate platform. It provides a leading indicator of market trends based on seller expectations.

Q2: Why did the index improve in July 2025?
The improvement from -0.5% to -0.4% year-on-year reflects a slight increase in seller confidence and a potential stabilization in market conditions, though high mortgage rates and affordability issues continue to weigh on activity.

Q3: Is this a sign that UK house prices will rise soon?
Not necessarily. While the narrowing decline is positive, the market remains under pressure from high borrowing costs and economic uncertainty. A sustained recovery would likely require lower interest rates and improved consumer confidence.