UK Home Asking Prices Post Sharpest August Drop Since 2018
UK asking prices fell 2% in August, the steepest drop for the month since 2018, as high supply and summer slowdown weigh on the market.
Asking prices for newly listed homes in Britain fell 2.0% in the four weeks to August 8, marking the sharpest August decline since 2018, according to data from property website Rightmove. The drop is steeper than the 10-year average August fall of 1.3%.
The seasonal summer slowdown, combined with the highest number of homes for sale in 12 years, is putting downward pressure on prices. On an annual basis, asking prices are now 1.0% lower than a year ago — the biggest yearly decline since December 2023.
Regional variations are stark. London recorded the steepest annual fall at 3.1%, while the north of England saw prices rise over the same period.
Despite the price weakness, buyer demand has shown a modest uptick since Prime Minister Andy Burnham took office on July 20, rising 5% in that period. However, demand remains 10% below the level seen a year earlier.
Mortgage costs are adding to the strain. The average two-year fixed-rate mortgage has climbed to 5.09%, up from 4.92% a month earlier.
Looking ahead, Rightmove has revised its forecast for 2026 price growth down to between flat and a fall of up to 2%, citing geopolitical uncertainty, higher mortgage rates, and the upcoming October budget as key risks. The survey was based on asking prices for properties listed between July 12 and August 8.