Sellers attempt to lure distracted summer buyers with lower prices
The average asking price of newly listed homes for sale has dropped by 1.0%, or £3,832, this month to £372,359, as new sellers attempt to capture the attention of buyers distracted by the hot weather and the World Cup, according to Rightmove.
The May heatwave caused a temporary 8% drop in buyer demand before rebounding, while June’s heatwave caused a similar temporary decline of 6% and July a 4% dip.
It points out that the price drop is five times more than the average July drop over the last ten years of 0.2%.
Rightmove says that competitive initial asking price remains critical to a successful sale, with three-quarters (74%) of all homes sold so far in 2026 not needing a price reduction. Those that do need their price cut spend an average of 127 days on the market, compared with 36 days for those that don’t.
The number of homes available for sale has also fallen, down 1% compared to the same time last year but close to a 12-year high for the time of year.
Mortgage rate rises fuelled by the war in Iran have created challenging conditions in the first half of the year, with the number of sales agreed 6% lower than the same period in 2025 but level with the first half of 2024.
The average two-year fixed mortgage rate now stands at 4.92%, up from 4.25% in February before the conflict began but down from 5.07% last month.
Fundamentals remain positive
However, the fundamentals supporting the housing market remain positive, according to Rightmove, with competition among lenders, wages rising faster than house prices and unemployment remaining low. It said that these factors leave room for optimism in the second half of the year, particularly if mortgage rates see any falls, and average wage growth continues to outpace house prices, although political uncertainty will have an impact.
Colleen Babcock, 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.”
“A new Prime Minister presents an opportunity to make housing a renewed priority, with action needed to support affordability, mobility and the delivery of more homes,” said Babcock.
