The average asking price for a UK home fell by £3,832 month-on-month in July, a 1.0% drop that was larger than the typical 0.2% decline seen in July over the past decade, according to property website Rightmove. The average price tag on a home coming to market this month is £372,359.
Distractions Drive Down Prices
Rightmove said sellers are having to compete harder to attract distracted summer buyers in a market where supply is very high. Although the number of available homes for sale is 1% below this time last year, it remains very close to a 12-year high for the time of year. The report noted that home movers are traditionally distracted by the summer holiday season, but this year, the World Cup and the hot summer have also contributed to lower activity levels.
Colleen Babcock, a property expert at Rightmove, said: “This month’s larger-than-normal price fall reflects the reality of a market where buyers have plenty of choice and sellers are having to work harder to stand out and attract them. They’re also competing with an unusual number of distractions, which have been keeping the minds of some potential buyers occupied, namely the World Cup and the hot weather. While these diversions are short-term, they’re adding to what is already a distracting summer holiday period to create a challenging selling environment.”
Mortgage Rates and Global Factors
Rightmove said the first six months of 2026 have presented challenges for home movers, with mortgage rates having jumped amid the conflict in the Middle East. Matt Smith, a mortgage expert at Rightmove, said: “Mortgage rates are higher than many buyers would have hoped for at the start of the year, and the increases due to the war in Iran have understandably dented confidence for some. However, lenders remain keen to lend, and the mortgage market is still competitive.”
Nathan Emerson, CEO of property professionals’ body Propertymark, said: “While the year initially started with optimism in the housing market, global unease has in many ways dominated the agenda ever since. Rightly so, many consumers have been exercising greater caution with their spending to help ensure household budgets are better protected against unforeseen increases in expenditure.”
Pricing Strategy Key for Sellers
Highlighting the importance of getting prices right from the outset, Rightmove said that nearly three-quarters (74%) of homes selling and completing this year did so without an asking price reduction. Homes that do require an asking price reduction spend an average of 127 days on the market, compared with just 36 days for those that sell without a reduction.
Ms Babcock added: “Pricing remains critical, and it’s remarkable that nearly three-quarters of homes that have sold so far this year have done so without needing an asking price reduction.”
Chris Thomas, managing director at Wiglesworth & Co Estate Agents in Leamington Spa, Warwickshire, said: “In the type of market we’re in currently, there are some clear rules that sellers need to follow to successfully find a buyer. Firstly, accuracy of pricing is everything and getting the price right the first time gives sellers the best chance. Secondly, sellers need to choose an agent who knows the local area and market extremely well and has a proven strong track record of giving honest and professional advice. There are still buyers active in the market and positive signs that mortgage rates could be easing.”
