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.

July Sees 1% Drop in UK Asking Prices Amid High Supply and Mortgage Pressures

Rightmove’s July 2026 asking price index shows that average asking prices in the UK fell by 1% (£3,832) to £372,359 this month. This decline is larger than the typical 0.2% dip usually seen in July, with market activity affected by high supply, summer distractions, and ongoing uncertainty.

According to the report, the supply of homes for sale is close to a 12-year high for this time of year, giving buyers more choice. Sales activity in the first half of 2026 was down 6% compared to the previous year, but remained level with 2024. Higher mortgage rates, following the war in Iran, have added further pressure to the market.

Industry figures noted that the year began with optimism, but global events have led many consumers to exercise greater caution with their spending. The Bank of England’s upcoming decision on the base rate at the end of the month is being closely watched, as it is expected to influence the market, particularly for those with tracker mortgages or considering a move.

Rightmove’s mortgage expert highlighted that mortgage rates are higher than many buyers had hoped for at the start of the year, and that recent increases have affected buyer confidence. However, lenders remain keen to lend, and the mortgage market is still described as competitive. There is ongoing uncertainty, and while recent mortgage rate cuts could stop soon, the market is not experiencing the difficult lending conditions seen in the past.

For letting agents and inventory clerks, the current market conditions mean that accurate pricing and local expertise are especially important for sellers. There are still active buyers, and some positive signs regarding mortgage rates, but sellers are advised to price accurately and work with experienced agents to achieve successful outcomes.