House prices drop in July as buyers distracted by sunshine, football and political change, says Rightmove | News

The average asking price of newly-listed homes for sale dropped by 1.0% in July as “as new sellers try to tempt summer buyers who are facing many distractions,” according to Rightmove’s latest house price index (HPI).

This reduction is larger than the average 0.2% July drop seen over the last ten years, bringing the average UK property price to £372,359. Rightmove has attributed this to slower market activity, 6% lower than this time last year, brought on by the unusually hot summer weather, World Cup and a change in prime minister.

Meanwhile, the supply of homes for sale is 1% below the same time last year, but is close to a 12-year high for the time of year.

Analysis by Rightmove showed 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.

Colleen Babcock, property expert at Rightmove, said: “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 remains critical, and it’s remarkable that nearly three-quarters of homes that have sold so far this year have done so without needing an asking price reduction. 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.”

According to the property website’s daily mortgage tracker, 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.