Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
UK Property Market Remains Subdued Amid Regional and Affordability Gaps
The latest figures from Rightmove, Nationwide, and Lloyds indicate that the UK property market remains subdued, with significant differences in affordability, property type, and regional performance. National averages continue to mask the varied experiences of buyers and sellers across the country.
Rightmove reported the largest August price drop since 2018, with the average asking price of a newly-listed property falling by 2.0% (£7,360) in the month. This decline is larger than typically seen in August. The data also shows a regional divide, with prices in the north of England up by 1.5% compared to August 2025, while other regions have not seen similar growth.
Buyer demand has increased by 5% since Andy Burnham became Prime Minister on July 20th, according to Rightmove. The average two-year fixed mortgage rate has risen to 5.09%, up from 4.95% the previous month. Rightmove also noted that nearly three-quarters of homes sold so far this year have not required an asking price reduction.
Nationwide’s latest index shows that UK annual house price growth slowed to 1.8% in July, down from 2.2% in June. House prices increased by 0.1% month on month. The average time spent in a home is 14 years, with those owning outright averaging 24 years and those in the private rented sector averaging 5 years. In 2024/25, three quarters of moves were within the same tenure type.
Lloyds reported that house prices remained stable in July, with no change (0.0%) following a 0.2% rise in June.
For letting agents and inventory clerks, these figures highlight the importance of understanding local market conditions and the impact of affordability pressures on different property types and regions. The subdued market and regional disparities may influence rental demand, property turnover, and pricing strategies in the months ahead.
Source: The Negotiator