12:01 AM, 17th August 2026, 49 seconds ago
Sellers have cut house asking prices by 2% in August, the sharpest fall for the month since 2018, as a 12-year high in homes for sale gives buyers more choice.
Rightmove says the average newly listed asking price fell by £7,360 to £364,999, compared with an average August drop of 1.3% over the past decade.
Asking prices are now 1% lower than a year ago, the largest annual fall since December 2023.
Buyer demand has, however, risen by 5% since Andy Burnham became Prime Minister on 20 July, although buying activity remains 10% below last year’s level.
Market reality hits
Rightmove’s property expert, Colleen Babcock, said: “This month’s larger-than-usual August price drop is a sign that many sellers are recognising the reality of the market and pricing much more competitively from day one.
“Buyers have the widest choice of homes for sale at this time of year in more than a decade, so standing out on price for the right reasons is hugely important.”
She added: “While no seller likes to come to market lower than they might have hoped, Rightmove analysis shows that those who price realistically are statistically proven to be giving themselves the strongest chance of finding a buyer and successfully completing a move.
“One tactic some sellers are using when considering lower offers on their home, is to also make a lower offer themselves on their onwards purchase, to see if they can make up the difference.”
Sellers face competition
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Although asking prices are not selling prices but often reflect owners’, or agents’, aspirational starting points, these figures help demonstrate how difficult it has become to attract genuine buyers.
“Confidence has not been helped by continuing worries about the direction of travel for interest rates and inflation, while speculation about possible tax changes in the Budget is inevitably weighing on decision-making in a price-sensitive market.”
He added: “The change in occupier at Number 10 Downing Street has prompted some re-awakening of demand but not enough so far to reduce in sufficient numbers the amount of stock overhanging the market, particularly flats.
“As a result, successful sellers need to go further than just set ‘fairly reasonable’ asking prices or make ‘token’ reductions as part of negotiations if they are serious about generating offers and achieving sales.”
London prices fall
England’s northern regions have seen average new seller asking prices rise by 1.5% compared with last year, while prices across southern England have fallen by 1.8%.
The North West recorded the largest annual increase at 1.9%, while London had the biggest fall in Great Britain at 3.1%.
The number of homes available for sale in the capital is at its highest level for 16 years, increasing competition between sellers looking for buyers.
An average London home still costs around 17 times the national average annual wage and is priced 38% above the South East.
