Average UK asking prices for homes have fallen by 2% between July and August 2026, according to Rightmove analysis. This represents the largest August drop since 2018, with asking prices also down 1% compared to a year ago.
Rightmove attributes the decline to increased competition among sellers, with the number of homes for sale at a 12-year high for this time of year. A quieter summer holiday period has also prompted sellers to reduce asking prices.
Regional trends vary, with the North East seeing a 0.6% month-on-month increase in average asking prices. In contrast, London experienced a 4.4% fall since July and a 3.1% decline over the past year.
While autumn typically sees a rebound in the housing market, a smaller-than-usual bounce is expected in September. Knight Frank's Tom Bill suggests that high mortgage rates, which are unlikely to see a meaningful short-term drop, are weighing on prices.
Rightmove has downgraded its 2026 forecast, now expecting asking prices to fall by between 0% and 2%. Other forecasts include Savills predicting a 2% fall and Zoopla expecting 1% growth in asking prices for 2026. Scotland and the North of England are the most likely areas to record house price growth in 2026, while prices are expected to fall in London, Wales, and the South of England.