The average sale price of a home in England and Wales fell for the sixth month in a row, down by 0.6% in July 2025, according to Acadata.

Average prices are now 2.2% lower than 12 months ago at £353,300.

Rob Owens, Head of Research at Acadata, said: “While activity remains subdued, HMRC data for June shows signs of recovery in transaction volumes. This week’s base rate cut to 4.0% may offer some relief to borrowers, particularly first-time buyers, but we don’t expect a significant change in mortgage rates in the short term. Lender caution and broader market conditions continue to weigh on affordability, especially in higher-priced regions like the South East and London. Nonetheless, rising real incomes and improving sentiment suggest the market may be entering a period of gentle recovery. With further rate cuts expected and no major policy interventions on the horizon, the second half of the year could offer a more stable footing.”

Regionally the northern markets remain strong, with Yorkshire and the Humber, as well as the North East, the only English regions where prices increased both monthly and annually to June 2025 by 0.8% and 1.4% in Yorkshire and the Humber and 1.2% and 0.5% in the North East.

No other region increased annually but two went up monthly, the East Midland by 1.4% and the North West by 0.5%. House prices in London continued to decline with falls of 2.3% monthly and 1.6% annually.