Property costs are solely anticipated to extend by solely 2% this 12 months, down from 4%, after Rightmove revised its prediction.
The annual development charge at the moment sits at simply 0.1%, whereas costs fell up to now month, tempering expectations.
Nonetheless, Rightmove mentioned there’s robust purchaser exercise, whereas any additional cuts to the Financial institution of England base charge might cheapen up mortgages, fuelling extra demand.
This 12 months there’s been a decade-high provide of properties available on the market, which is limiting home value development.
Colleen Babcock, property skilled at Rightmove, mentioned: “It’s been a promising first half of the 12 months for exercise ranges, notably when you think about that some could have introduced their plans ahead to attempt to keep away from added stamp responsibility from April.
“Even after the stamp responsibility deadline, we’re seeing extra gross sales being agreed and extra new potential patrons coming into the market than on the similar time final 12 months.
“Nonetheless, the knock-on impact of excessive purchaser selection is slower value development, so we’re revising down our prediction of how a lot the asking value of a house will improve over the entire of the 12 months.
“Waiting for the second half of 2025, there’ll nonetheless very probably be the same old quieter seasonal durations across the summer season holidays and Christmas, however we anticipate market exercise to proceed to be resilient.
“Crucially, purchaser affordability is on the right track, and one other two Financial institution Fee cuts earlier than 2026 could be a giant enhance to this.”
This month the worth of property coming to market dropped by -1.2%, bringing the common value all the way down to £373,709, suggesting we’re in a patrons’ market.
London is the largest regional driver of latest vendor asking value falls this month (-1.5%), led by Internal London (-2.1%).
Babcock added: “We’re seeing an fascinating dynamic between pricing and exercise ranges proper now.
“The wholesome and bettering degree of property gross sales being agreed exhibits us that there are motivated patrons on the market who’re keen to finalise a deal for the best property. What’s most essential to recollect on this market is that the worth is vital to promoting.
“The last decade-high degree of purchaser selection signifies that discerning patrons can shortly spot when a house appears over-priced in comparison with the various others that could be accessible of their space.
“It seems that extra new sellers are aware of this and are responding to this high-supply market with stand-out pricing to entice patrons and get their residence bought.”
