September, 2025
Find out what is going on in the local property market for Solihull According to Rightmove House Price Index, average new seller asking prices drop by a seasonal 1.3% (-£4,969) this month to £368,740. August’s price drop is in
line with the previous ten-year average, returning to seasonal trends after bigger than usual asking price drops in June and July. Summer holiday distractions traditionally result in an August price drop. The average new seller asking price for a home has now fallen by just over £10,000 (-£10,777) this summer, as savvy summer sellers price competitively to stand out and attract a buyer. This has contributed to the highest number of sales agreed in the full month of July since 2020. While the right property at the right price is still finding a buyer, evidenced by the high number of agreed sales, it appears that some sellers are still coming to market with a too-high initial price, shown by more than one in three homes seeing a price reduction during marketing.
According to Nationwide House Price Index, in August, annual house price growth slowed slightly to 2.1%, down from 2.4% in July. On a monthly basis, prices slipped by 0.1% once seasonal factors were taken into account.
This softer growth isn’t too surprising given how stretched affordability still is. House prices remain high compared to household incomes, which makes saving for a deposit tough for many buyers — especially after several years of rising living costs. On top of that, mortgage rates are still more than three times higher than they were just after the pandemic, which means repayments are a real challenge. For example, an average earner buying a typical first-time buyer home with a 20% deposit would now spend around 35% of their take-home pay on mortgage payments, compared with the long-term average of 30%.
The good news is that affordability should slowly improve. If wages keep rising faster than house prices, and if the Bank of England lowers interest rates again later this year, mortgage costs should ease further. This would help support buyer demand, especially as household finances remain fairly resilient and the jobs market is expected to stay strong.
House prices in Solihull (Borough of) have an overall average of £381,947 over the last year.
The majority of properties sold in Solihull (Borough of) during the last year were semi-detached properties, selling for an average price of £367,321. Detached properties sold for an average of £649,249, with flats fetching £186,051.
Overall, the historical sold prices in Solihull (Borough of) over the last year were 2% up on the previous year and 1% down on the 2022 peak of £386,082.
Houses in the region are taking on average 59 days to go under offer, from the 59 days we saw in July.
The housing market is showing plenty of activity right now, with sales agreed up 8% compared to this time last year. Lower asking prices and more choice for buyers are helping to drive this increase. There are also 10% more homes for sale than last year, keeping the number of available properties at the highest level we’ve seen in a decade. That said, the number of new listings coming to market is only 4% higher, which could mean supply starts to ease slightly if strong sales continue.
For sellers, it’s worth noting that 34% of homes are having to reduce their asking price while on the market. In fact, the only time this figure has been higher was in 2023. This shows the market is becoming more “two-speed” — well-priced homes are selling quickly, while overpriced ones are taking much longer. On average, it’s now taking 62 days to find a buyer, but if a property is priced right from the start, this drops to just 32 days. By contrast, homes that need a price reduction take around 99 days to sell.
The Bank of England’s third interest rate cut this year is also giving the market a welcome boost. Mortgage rates are continuing to ease, with the average two-year fixed rate now at 4.49%, down from 5.17% a year ago. For buyers, that’s a saving of about £117 per month on the average home, assuming a 20% deposit and a 30-year mortgage. While a few more small drops in rates are expected, major cuts are unlikely. The latest reduction is good news for movers, though the closer-than-expected vote has cast a little doubt on whether we’ll see another cut later in the year.4
If you are interested to know what your property is worth, please click here to book a market appraisal.Alternatively, call the office on 0121 430 4448 or email enquiries@hshomesofsolihull.co.uk
