Rightmove’s July asking price index shows average asking prices fell 1% (£3,832) to £372,359 this month – well above the typical 0.2% July dip – as summer distractions including the World Cup, hot weather and political uncertainty compounded a market where supply is close to a 12-year high for the time of year and buyers have plenty of choice.
Sales activity in the first half of 2026 was down 6% year-on-year, though level with 2024, as higher mortgage rates following the war in Iran added further pressure.
Asking prices fall as buyers face summer distractions
Responding to the figures, Nathan Emerson, chief executive of Propertymark, said: “While the year initially started with optimism in the housing market, global unease has in many ways dominated the agenda ever since.
“Rightly so, many consumers have been exercising greater caution with their spending to help ensure household budgets are better protected against unforeseen increases in expenditure.
“All eyes will be firmly focused on the Bank of England at the end of the month as it makes its next decision on the base rate, something that will very much set the tone, especially for those considering their next house move or who have tracker mortgage products.”
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Matt Smith, Rightmove’s mortgage expert said: “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. 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.”
Chris Thomas, managing director at Wiglesworth & Co Estate Agents in Leamington Spa, Warwickshire said: “The market is certainly more challenging than at this time last year. However, in saying that, given the increases to mortgage rates we’ve seen in the first half of this year due to the war in Iran, I think the market has actually held up better than many expected.
“In the type of market we’re in currently, there are some clear rules that sellers need to follow to successfully find a buyer.
“Firstly, accuracy of pricing is everything and getting the price right the first time gives sellers the best chance. Secondly, sellers need to choose an agent who knows the local area and market extremely well and has a proven strong track record of giving honest and professional advice.
“There are still buyers active in the market and positive signs that mortgage rates could be easing. If sellers stick to these principles, they have a good chance of being successful.”