Average newly listed asking price fell 2.0% in August to £364,999, marking the biggest August decline since 2018 and outpacing the ten‑year monthly average drop of 1.3%.
August asking price drop hits seven‑year low
Rightmove says the sharper fall reflects a traditionally quiet summer and a 12‑year high in homes for sale, forcing sellers to price competitively from day one.
Annual listing values are now 1.0% lower than a year ago, the steepest year‑on‑year slide since December 2023.
“This month’s larger‑than‑usual August price drop is a sign that many sellers are recognising the reality of the market and pricing much more competitively from day one,” said Colleen Babcock, property expert at Rightmove.
She added that buyers now enjoy the widest selection of homes for sale in more than a decade, making price the primary way to stand out.
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“While no seller likes to come to market lower than they might have hoped, the analysis shows that those who price realistically are statistically proven to give themselves the strongest chance of finding a buyer and completing a move.”
Regional split shows north rising, south falling
National averages mask a widening divide. In northern England, newly listed values rose 1.5% year‑on‑year, led by the North West at 1.9% growth.
Scotland also posted gains, while southern England moved in the opposite direction, with valuations down 1.8% over the same period.
London recorded the sharpest decline, with listings falling 3.1% over twelve months – the largest annual drop in any part of Great Britain.
The capital now faces its highest supply of homes for sale since 2010, pushing competition among sellers.
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Homes in the capital cost roughly 17 times the national average annual wage, a ratio that sits alongside raised mortgage rates to stretch buyers significantly.
Capital prices sit about 38% above the South East, the next most expensive region, and buyers also confront higher stamp duty, a reduced stamp duty threshold introduced last year, and a Lifetime ISA cap of £450,000 that limits first‑time buyer access.
Leasehold flats add another layer of cost scrutiny, as service charges and lease terms draw closer attention than in previous years.
Buyer activity rose 5% after Andy Burnham became Prime Minister on 20 July, reversing a 2% fall during the same span last summer.
Overall demand remains about 10% below last year’s level, but the policy reassurance that property taxes will not rise in October has eased some uncertainty.
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The portal notes that World Cup fixtures and a series of heatwaves also weighed on viewings during the summer months.
Mortgage rates kept climbing, with the average two‑year fixed rate reaching 5.09% in August.
The portal sees some scope for rates to ease in the weeks ahead.
Rightmove revised its full‑year 2026 price forecast downward, from an expected rise of 2%.
