This is our regular look at the facts and figures behind the Gloucester property market last month and offer our thoughts and observations on what this means and what may lie ahead.
House Prices
The average asking price of newly-listed homes for sale dropped by 1.0% (-£3,832) last month to £372,359, substantially larger than the average July drop over the last ten years of 0.2%, as new sellers try to tempt summer buyers who are facing many distractions.
In Gloucester the average asking price of properties coming to the market was £296,060 which is a year on year increase of 2%. Across Gloucestershire the average asking price is up year on year by 0.7% and stands at £406,127.
In Gloucester and across GL1, 2, 3 and 4 there were 249 price reductions through the month of July. One agency covering Gloucester accounted for over 27% of those reductions suggesting a high number of false valuations given initially. The same agent has a standard 3-month notice period written in to its terms of business so be careful not to fall for the highest price when choosing your estate agent.
Homes that underwent a price reduction were 27% less likely to receive an offer than properties that remained at their original asking price, suggesting many enter the market overpriced.
When choosing your estate agent, it is worth remembering that a lot of the valuers who come to see you are personally rewarded for just getting your house on the market rather than selling it. The philosophy of some of these to deliberately inflate their valuation simply to win your business appears to show little sign of changing.
Properties for sale
The World Cup and unusually hot summer have added to the traditional summer holiday season to distract home-movers. Buyers have plenty of choice and sellers are having to work harder to stand out and attract them.
Properties in Gloucester are currently taking on average 48 days to sell, up 3 on last year, but quicker than the first half of 2026. Gloucester has returned to the top 5 of England’s fastest selling major cities.
July saw sales agreed on 290 properties across GL1, GL2, GL3 and GL4 significantly down on the figure for the same period last year which stood at 369.
The number of homes currently available across the UK remains at a 14 year high and it certainly remains a buyers’ market. As of 31st July, there were 1185 properties unsold across the four Gloucester postcodes. At the same time in 2025 there 1109 unsold properties across GL1, GL2, GL3, GL4.
Interestingly the estate agent with the highest number of price reductions and lengthy notice period also had 229 unsold properties at the end of July. Are you one of those sellers stuck in limbo and stuck in a contract you cannot get out of?
Of the 1185 properties unsold on the Gloucester property market at the end of July, 732 had been on the market for at least 8 weeks, whilst 536 of those had been on the market unsold for 12 weeks or more.
If we delve a little deeper then it shows 522 (44%) of the properties are priced at £250,000 or less, 379 (32%) of the properties are priced between £250,000 and £400,000, 130 (11%) are priced between £400,000 and £500,000 with 154 (13%) priced over half a million pounds.
Mortgages
Net mortgage approvals for house purchases rose to 58,200 up from 56,600 the previous month, according to the Bank of England’s latest Money and Credit report.
A consistent Bank of England base rate, competitive mortgage products, easing inflation and a temporary reduction in geopolitical tensions are all likely to have supported buyer confidence.
However, there remain headwinds. Inflation is still above the Bank of England’s 2 per cent target, while higher household costs continue to place pressure on household finances. The renewed escalation of hostilities in the Middle East is also almost certainly going to see inflation rise before its next figure release.
A number of major mortgage lenders have increased borrowing costs reflecting heightened market uncertainty amid growing concerns that renewed conflict in the Middle East could fuel inflation and delay further interest rate cuts.
Mortgage borrowers are increasingly favouring shorter-term fixed-rate deals despite them carrying higher average rates than longer-term alternatives, according to analysis of search activity on Moneyfactscompare.co.uk.
Positive news is that lenders are looking for more and more ways to help peoples affordability and we will look at this in more detail in a dedicated article in the coming days.
Summary
Political change is adding uncertainty to the market and adding to summer buyer distractions. The new Prime Minister has a chance to press the reset button on priorities, and the property industry is urging that housing should be high on the list
What would be most unhelpful for the market is long periods of uncertainty caused by policy rumours and speculation. There have already been rumours about a potential Land Value Tax replacing stamp duty and council tax - if rumours are allowed to swirl, with no clear details or deadlines, some potential home-movers may hesitate for fear of missing out.
There remains plenty of choice for buyers and anybody looking for property should make sure they are maximising their search options - increase your budget by a price band or two and widen your search area.
Sellers must continue to balance price ambition and market realism to give yourselves the best chance of finding a buyer and getting your home sold.
Choose your estate agent wisely. Are you being lulled in by an over inflated asking price, given to you by an agent who is only interested in winning your business rather than selling your home?
As always, we appreciate your thoughts and comments on the Gloucester property market and are happy to answer any questions you have or provide any assistance with your home moving plans.
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