Rightmove has reported that average new seller asking prices on its platform fell by 0.4% (-£1,617) this month to £373,493, a bigger July drop than usual.

It stated that market activity remained steady throughout the General Election campaign, and that while there are signs that some would-be movers are waiting for the first Bank of England Base Rate cut, most are continuing with their moving plans.

The number of sales being agreed remains encouraging at 15% above the same period a year ago, when mortgage rates were approaching their peak, while the number of new sellers coming to market is a steady 3% above last year.

Buyer demand remains stable overall, but there was a slight drop (-2%) in demand in the particularly affordability-stretched first-time buyer sector.

Tim Bannister, Rightmove’s director of property science, said: “Three major uncertainties hanging over the property market at the start of the year were when the first interest rate cut would be, and the timing and the result of the General Election. We’ve now got the political certainty of a new government with a large majority, which we expect will help home-mover confidence.

“It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the government is keen to get going with its manifesto pledges. With many areas of the market that could be improved, we hope that the new government is able to get on with its plans and deliver sustainable housing policies that help the market in the medium to longer-term.

“One area of the market in need of more support is first-time buyers, many of whom have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.”

Maeve Ward, head of intermediary sales at Together, added: “Momentum in the summer market has stalled with property prices dropping this month. However, with inflation hitting the base rate for the first time in over two years and The Bank of England expected to cut rates as soon as August, there is cause for optimism.

“Add to that, the arrival of a new administration and Chancellor Reeves’ communicating an action plan showing strong ambition to reenergise the market moving is heartening. Our own research has shown that at least 19% of the UK’s property professionals want more support with brownfield development, so Labour’s focus on these sites should see more spades in the ground – further boosting supply and activity across the industry. The creation of a task force to address the stalled housing sites will be sweet music to SME housebuilders waiting in the wings play their part in delivering stock to the market.

“What the market needs to hear next is more support for first-time-buyers and those seeking affordable housing in order to get more people onto the ladder.”