Property Price Index Blog

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erage asking price of a newly-listed home coming onto the market for sale falls by 1.0% (-£3,832) this month to £372,359. While a price drop in July is normal, this month’s fall is much larger than the ten-year average drop we’d see in July (0.2%).

Sellers are having to compete harder to attract summer buyers. The supply of available homes is close to a 12-year high for the time of year, giving buyers plenty of choice. Home-movers are always distracted by the summer holiday season, but the World Cup and hot weather have also added to distractions.

Rightmove analysis shows that the first heatwave in May caused a temporary 8% drop in demand from buyers before rebounding. June’s heatwave caused a similar temporary dip in demand of 6%, followed by a 4% drop during the current July heatwave.

A new Prime Minister adds to the distractions that buyers are facing, but also offers a chance to reset political priorities. Rightmove is urging that housing should be high on the agenda, with a focus on changing how stamp duty works and helping house builders to get closer to the target of 1.5 million new homes.

Conditions for buyers remain positive

It’s fair to say that the first half of 2026 has brought some challenges for home-movers and the housing market. The war in Iran pushed mortgage rates higher and the number of sales agreed from January to June was 6% lower than the same period in 2025.

However, sales agreed for the first half of 2026 stayed level with those for this period in 2024. This shows that buyers are still being tempted when they find the right property at the right price.

New Rightmove analysis shows how important it is to set a property’s asking price right from the start of the sales process. Nearly three-quarters (74%) of homes that have successfully sold and completed this year did so without having prices reduced.

Overall, conditions for buyers remain positive. Lenders are competing strongly on rates, wages continue to rise faster than house prices, and unemployment is staying low. This leaves room for optimism for the second half of 2026, particularly if mortgage rates drop and wages continue to grow faster than house prices.

What are mortgage rates doing?

Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate is now 4.92%. This is up from 4.25% in February (before the war in Iran), but down from 5.08% last month*.

“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,” explains Matt Smith, Rightmove’s mortgages expert.

“However, lenders remain keen to lend, and the mortgage market is still competitive. There is still uncertainty in the market, and recent mortgage cuts could stop in the near future, however we’re not seeing the kind of difficult lending conditions that have caused more challenging markets in the past.

“If the outlook shifted and we saw reductions in mortgage rates, it would be a welcome boost to confidence and affordability.”