Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
UK Asking Prices Drop 1% in July Amid Market Headwinds
Average asking prices for newly-listed homes in the UK fell by 1% in July, according to Rightmove’s latest House Price Index. This decrease, amounting to £3,832 and bringing the average to £372,359, is notably steeper than the 0.2% average July decline seen over the past decade.
Second stepper homes saw the largest price drop at 0.9%, while top of the ladder and first-time buyer properties declined by 0.5% and 0.6% respectively. Sales agreed in the first half of the year were 6% lower than the same period in 2025, but matched levels from the first half of 2024. Available housing stock was 1% below last year’s levels, though it remained close to a 12-year high for this time of year.
Rightmove attributed the decline to several factors, including increased mortgage rates following the Iran conflict, political uncertainty, the World Cup, and persistent heatwaves. The May heatwave led to an 8% drop in buyer demand, with June and July heatwaves causing further declines of 6% and 4% respectively.
New research from Rightmove highlighted growing price sensitivity among buyers. Three quarters of homes that completed sales this year did so without a price reduction. Properties that required price cuts spent an average of 127 days on the market, compared to just 36 days for those selling at the original asking price.
Nathan Emerson, Chief Executive of Propertymark, noted a significant dip in mortgage borrowing and a lower volume of new mortgage approvals in recent months. Attention is now focused on the Bank of England’s upcoming rate decision.
Market conditions continue to challenge first-time buyers across different price points, with affordability concerns remaining despite the recent expansion of high loan-to-value mortgage products. Jeremy Leaf, a north London estate agent and former RICS residential chairman, pointed to ongoing uncertainty from domestic political upheaval and the Iran war’s impact on interest rates and the cost of living.
Tomer Aboody, founding director of MT Finance, commented that affordability remains a concern as the Iran war keeps mortgage rates higher for longer. He also noted that lenders are keen to lend and needs-based buyers are taking advantage of higher leveraged deals. Colleen Babcock of Rightmove called on incoming Prime Minister Andy Burnham to prioritise housing policy, while Aboody suggested that stamp duty reductions could boost transactions and benefit the wider economy.
Market participants expect the traditional summer slowdown to persist as schools break for holidays, with subdued activity likely until autumn.
Source: PropertyWire