According to Rightmove, the number of agreed sales last month was 8 per cent higher than the same period last year.
This increase has been driven by greater housing supply and more competitive pricing from vendors.
Asking prices for newly listed properties fell 1.3 per cent in August to an average of £368,740, following the usual seasonal pattern but coming after steeper than usual drops in June and July.
The average home has shed more than £10,000 in asking value over the summer months.
Rightmove describes the current situation as a “two-speed” market.
Properties that are competitively priced are finding buyers within 32 days on average, while homes that require a price reduction typically take 99 days to sell.
“Astute buyers are now benefitting from asking prices which are on average an enticing £10,000 cheaper than three months ago. The strategy is working, with July sales the highest since 2020,” Tim Bannister, Rightmove’s property expert said.
The market has also been supported by improved mortgage conditions, with the average two-year fixed rate now at 4.49 per cent compared to 5.17 per cent a year ago.
This reduction reflects the three Bank of England rate cuts implemented this year.
However, uncertainty remains about whether another rate reduction will follow before the end of the year, as the margin in the most recent vote was particularly narrow.
Approximately one in three sellers is cutting prices during the marketing process, indicating that realistic pricing is becoming increasingly important in securing a sale in the current market conditions.
The data suggests that sellers who price their properties competitively from the outset are seeing much faster sales than those who need to make adjustments later in the process.
The housing market’s resilience comes despite ongoing economic challenges and previous concerns about the impact of higher interest rates on buyer demand.
Industry experts suggest that the combination of more realistic pricing, improved mortgage affordability, and increased housing supply has created more favourable conditions for transactions to take place.
First-time buyers in particular may find the current market more accessible, with the price adjustments bringing some properties within reach that might previously have been unaffordable.
