UK Property Asking Prices See Significant Monthly Drop Amidst Market Challenges

Typical asking prices for newly-listed homes in the UK have fallen by £3,832 over the past month, according to data from property portal Rightmove. The portal warned that sellers who set ambitious initial asking prices may wait over four months to find a buyer.

Rightmove’s analysis of homes sold in 2026 indicates that nearly three-quarters of properties were sold without requiring a price reduction. However, those homes that do need a price adjustment spend an average of 127 days on the market, in contrast to the 36 days for those sold at the initial asking price.

Chris Thomas, managing director at Wiglesworth & Co. estate agents, emphasized the importance of accurate initial pricing for sellers. He also highlighted the need to select an agent with strong local market knowledge and a proven track record of providing professional advice.

The average asking price of a newly-listed home decreased by 1% between June and July, reaching £372,359. This follows a £2,113, or 0.6%, drop in the previous month, which was the largest June decrease in 14 years. The current average is down from a record high of £379,517 in May.

The latest monthly price fall is notably larger than the average July decrease of 0.2% observed over the past decade. Rightmove attributes this trend to a surplus of properties on the market, which provides buyers with more choices and necessitates sellers working harder to attract attention.

Colleen Babcock, a property expert at Rightmove, noted that external factors such as the World Cup and unusually hot weather have also contributed to a challenging selling environment, diverting potential buyers' attention during the summer holiday period. These distractions, though temporary, add to the existing market complexities.

Adding to the market pressures, mortgage rates have recently increased. Financial institutions including Nationwide, NatWest, Barclays, and Virgin Money have raised their mortgage costs. This trend is partly attributed to renewed conflict in the Middle East, which has fueled concerns about rising interest rates and reversed expectations of Bank of England rate cuts.

Matt Smith, Rightmove's mortgage expert, stated that current mortgage rates are higher than many buyers anticipated at the beginning of the year. The increases, exacerbated by international conflict, have impacted buyer confidence. He added that a shift in market outlook, leading to mortgage rate reductions, would significantly boost confidence and affordability for prospective buyers. Those remortgaging or purchasing a home are now facing higher costs, underscoring the importance of securing the best possible mortgage rates and seeking expert advice.