Newly listed homes in the UK dropped in asking price by 1.0% in the four weeks to 11 July, a fall five times larger than the average seasonal dip for the month, according to Rightmove’s House Price Index.
The portal’s data, also reported by Reuters, puts the average asking price at £372,359, down £3,832 on the month and 0.4% lower than a year ago. July typically brings a 0.2% dip as the market slows into summer, but this year’s fall was five times that.
Rightmove points to an unusually crowded distraction list: the men’s football World Cup, record-breaking heat and a change of Prime Minister have all pulled buyer attention away from the search for a new home.
The portal’s analysis found the first heatwave in May triggered an 8% temporary drop in buyer demand before it recovered, June’s heatwave caused a 6% dip, and the current July heatwave has produced a 4% fall.
Supply is doing sellers no favours either. The number of homes on the market is close to a 12-year high for the time of year, even though it sits 1% below last year’s levels, meaning buyers have plenty of choice and less urgency to act.
Colleen Babcock, property expert at Rightmove, said the numbers reflect a market where sellers are having to work harder to stand out.
“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,” Ms Babcock said.
Mortgage costs remain a factor in the background. The average two-year fixed rate has eased slightly to 4.92%, down from 5.07% in June, but still well above the 4.25% recorded in February before what Rightmove and Reuters both describe as a war involving Iran unsettled the lending market.
Sales across the first half of 2026 were 6% below the same period last year, though volumes were level with the first half of 2024.
Ms Babcock said the first half of the year had proved more difficult than many expected.
“The first half of 2026 has been more challenging than many predicted, with the unexpected war in Iran contributing to higher mortgage rates and greater uncertainty for buyers. While activity remains below last year’s levels, it’s encouraging that the number of sales being agreed in the first half of the year is in line with 2024/”
Pricing discipline is emerging as the clearest lesson from the data. Rightmove found that nearly three-quarters (74%) of homes that sold and completed so far this year did so without any asking price reduction, reinforcing the portal’s view that getting the initial figure right matters more than ever in a market with abundant stock.
She added that the change in national leadership presents a chance to reset priorities.
“A new Prime Minister also presents an opportunity to make housing a renewed priority, with action needed to support affordability, mobility and the delivery of more homes,” she said.
Regionally, the picture is mixed. London recorded the steepest monthly fall at 1.6%, taking its average asking price to £676,248, while the North East fell 2.0%.
Only Yorkshire and the Humber, the North West and Wales posted month-on-month growth, each rising less than half a percent.
Rightmove’s mortgages expert, Matt Smith, said lenders remain willing to compete despite the uncertainty.
“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,” he said.
“However, lenders remain keen to lend, and the mortgage market is still competitive.”
This story draws on the Rightmove House Price Index, published 20 July 2026. Read the original here plus Reuters and Financial Reporter.