Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Rightmove: July Asking Prices See Largest Drop in a Decade

The average asking price for newly listed homes in the UK fell by 1% (£3,832) in July to £372,359, according to Rightmove. This marks the largest July decline in asking prices over the past ten years.

Rightmove stated that asking prices typically fall by 0.2% in July, but this year’s drop was attributed to sellers seeking to attract buyers who were distracted by events such as the World Cup, a heatwave, and a change of Prime Minister. The property portal reported that the warmer weather contributed to lower activity levels, with an 8% fall in buyer demand during May’s heatwave, a temporary 6% decline in June, and a 4% fall in July.

Rightmove’s analysis also found that buyers have become more price-sensitive, with sellers needing to work harder to stand out in a market where buyers have plenty of choice. The number of homes for sale was 1% down on last year, but still close to a 12-year high for this time of year.

Higher mortgage rates, influenced by the conflict in Iran, have impacted buyer sentiment and activity. Rightmove reported a 6% year-on-year fall in the number of sales agreed in the first half of 2026. The average two-year fixed mortgage rate was 4.92% in July, up from 4.25% in February, but lower than the 5.07% average in the previous month.

Despite these challenges, Rightmove noted that lender competition and wages rising faster than house prices continue to support market activity. The report also highlighted that right-priced homes are selling faster, as buyers remain cautious and are not prepared to pay over the odds.

For letting agents and inventory clerks, these trends suggest a more competitive sales environment, with increased sensitivity to pricing and ongoing impacts from external events and mortgage affordability.