Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Asking Prices Drop Sharply in July
The average asking price of a newly listed home in the UK fell by 1% in July, according to Rightmove. This decline is significantly larger than the average July fall of 0.2% over the past decade, as sellers competed more aggressively to attract buyers during a challenging summer market.
Rightmove reported that the average asking price dropped by £3,832 this month to £372,359. The property portal attributed the fall to a combination of the traditional holiday season, the World Cup, unusually hot weather, and political uncertainty, all of which have distracted potential buyers.
Market Conditions and Buyer Behaviour
Although the number of homes available for sale is 1% lower than at the same time last year, it remains close to a 12-year high for this time of year, providing buyers with a wide range of options. Rightmove’s analysis found that buyer demand dipped by 8% during May’s heatwave, fell by 6% during June’s hot weather, and dropped by a further 4% during the current July heatwave.
The housing market has also been affected by higher mortgage rates, with the average two-year fixed mortgage rate now at 4.92%, up from 4.25% in February. However, this rate has eased slightly from 5.07% last month. The number of sales agreed in the first half of 2026 was 6% lower than in the same period last year, but was level with the first half of 2024, indicating that buyers remain active when homes are competitively priced.
Implications for Letting Agents and Inventory Clerks
Rightmove found that 74% of homes sold and completed so far this year did so without an asking price reduction. Properties that required a reduction spent an average of 127 days on the market, compared with 36 days for those sold without a reduction. This highlights the importance of accurate pricing from the outset in the current market.
Despite the slower market, lenders continue to compete for borrowers, wage growth remains ahead of house price growth, and unemployment is low, supporting affordability. Rightmove also noted that the arrival of a new prime minister is adding another layer of uncertainty, and called for housing to be made a priority, including potential reform of stamp duty and measures to support housebuilding. Prolonged speculation over possible tax changes could cause some prospective buyers to delay moving.
Source: Property Industry Eye