The average asking price for a newly-listed home in Britain fell by more than £7,000 in August, according to property portal Rightmove. The site also revised its house price forecast for 2026, from a 2% rise to somewhere between zero growth and a 2% decline in average new seller asking prices for the full year.
Sharpest August drop since 2018
Rightmove reported that the average newly-marketed asking price dropped by 2.0% month-on-month, equivalent to £7,360, marking the steepest August price reduction since 2018. While prices typically decline during August, this is considerably sharper than the 10-year average of 1.3%.
Across Britain, the average asking price for a property in August stands at £364,999, which is 1% lower than the previous year – the most significant annual decrease since December 2023. The volume of properties available for purchase has also reached a 12-year peak for this period, which, combined with the subdued summer holiday season, has reduced price expectations amongst sellers.
Regional divides and buyer demand
The overall figure conceals an increasingly split regional landscape. In the North West of England, the average asking price has climbed by 1.9% annually, while in London it has tumbled by 3.1%.
Colleen Babcock, a property expert at Rightmove, commented: "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. Buyers have the widest choice of homes for sale at this time of year in more than a decade, so standing out on price for the right reasons is hugely important."
She added: "One tactic some sellers are using when considering lower offers on their home is to also make a lower offer themselves on their onwards purchase, to see if they can make up the difference."
While purchasing activity remains roughly 10% lower than the same period last year, Rightmove reported a "mini bounce" in buyer demand following Andy Burnham's appointment as Prime Minister. However, the portal warned that shifting mortgage rates, combined with geopolitical instability and the upcoming October Budget, were contributing to uncertainty across the housing market.
Ms Babcock said: "The mini Burnham bounce and some renewed general optimism have brought a degree of improvement to the market as a whole in recent weeks. Whether that develops into a more sustained recovery will likely depend on confidence, mortgage rates and the new Chancellor's first Budget this autumn."
Industry reactions and rental trends
Marc von Grundherr, director of Benham and Reeves, commented: "There's no denying that London is having a more challenging year than many other parts of the country and affordability is at the heart of it. However, I wouldn't characterise the London market as being in any sort of serious decline. What we're seeing is a much more price-sensitive market and sellers who acknowledge that are still finding buyers."
Jeremy Leaf, an estate agent based in north London, said: "Although asking prices are not selling prices but often reflect owners', or agents', aspirational starting points, these figures help demonstrate how difficult it has become to attract genuine buyers."
Meanwhile, July's lettings index from property company Hamptons suggested that certain landlords are capitalising on opportunities to purchase properties within the sluggish sales market. The findings revealed that 56% of investor bids in July were at minimum 10% beneath the original asking price – climbing to 63% amongst landlords purchasing with cash. The data showed that 27% of these reduced offers from investors were accepted in July 2026, in contrast with merely 18% during July 2025.
Hamptons also published rental pricing statistics for Britain, based on achieved rather than advertised rents. The average monthly rental cost for a newly-let property rose by 1.9% year-on-year in July, the swiftest rate of rental expansion for new lets in 19 months, with the average monthly rent standing at £1,401.
David Fell, lead analyst at Hamptons, remarked: "When the market slows, seasoned investors rarely stand on the sidelines for long. With homes taking longer to sell and chains proving fragile, landlords are using their liquidity and chain-free status to maximise their leverage when it comes to agreeing a price." He continued: "While higher borrowing costs continue to weigh on investment returns, landlords with cash or low levels of borrowing are finding that a slower market is creating opportunities to purchase at significantly lower prices than would have been possible a few years ago."
Regarding the rental price rises, Mr Fell commented: "Although these hikes may not be as large as in previous peak years, for landlords, the re-emergence of an upward trajectory in rents provides a counterweight to higher borrowing costs."
Average monthly rental prices on newly-let properties and their annual fluctuation, as reported by Hamptons:
- London, £2,308, 0.6%.
- East of England, £1,279, 1.9%.
- South East, £1,507, 2.8%.
- South West, £1,317, 3.7%.
- East Midlands, £1,003, minus 0.9%.
- West Midlands, £1,121, 3.3%.
- North East, £865, 1.7%.
- North West, £1,065, 2.7%.
- Yorkshire and the Humber, £958, 2.4%.
- Wales, £888, 4.0%.
- Scotland, £1,064, minus 0.2%.
