UK House Asking Prices See Sharpest August Decline Since 2018

Average asking prices for newly listed homes in the UK fell by 2 percent or approximately 7,360 pounds in August, marking the largest August drop in eight years. According to data from Rightmove, the average asking price for a property across Britain now stands at 364,999 pounds, which is 1 percent lower than a year ago. The volume of available homes for sale has reached a 12 year high for this time of year, forcing many sellers to price properties more competitively to attract buyers.

The decline is not uniform across the country. While the North West of England saw an annual increase in asking prices of 1.9 percent, London experienced a decline of 3.1 percent. In the Royal Borough of Kensington and Chelsea, the average new asking price dropped by over 95,000 pounds in a single month to 1,552,970 pounds. Rightmove noted that the number of available homes in London is at a 16 year high.

Buy to let investors are increasingly leveraging the cooling market. Data from Hamptons indicates that 56 percent of investor offers in July were at least 10 percent below the initial asking price. The acceptance rate for these lower offers rose to 27 percent in July 2026, compared to 18 percent in July 2025. For leasehold properties, the acceptance rate for these low offers reached 41 percent.

Market analysts cite several factors contributing to the current climate, including higher mortgage rates, geopolitical uncertainty, and affordability pressures. While Rightmove reported a mini bounce in buyer demand following the appointment of Andy Burnham as Prime Minister, overall buying activity remains roughly 10 percent below last year levels. Future recovery may depend on the upcoming October Budget and shifts in mortgage rates.