British house prices fall in August
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The gist
Rightmove data shows UK new-listing asking prices fell 2.0% in August to £364,999, the biggest August drop since 2018. The fall signals a cooling market as mortgage rates rise and.
Background
The UK housing market is experiencing a slowdown due to rising mortgage rates and increased supply. Rightmove's data for August shows the largest monthly fall in asking prices for newly listed homes since 2018, with annual prices down 1.0%, the steepest decline since December 2023. The market is also affected by geopolitical uncertainty and the upcoming October Budget, leading Rightmove to cut its 2026 forecast from 2% growth to between 0% and -2%.
How it unfolded
- Jul 12, 2026Rightmove's survey period for August data begins, covering properties put up for sale until August 8.
- Jul 20, 2026Andy Burnham becomes Prime Minister, leading to a 5% rise in buyer demand, though still 10% lower than a year earlier.
- Aug 8, 2026Survey period ends; data shows average asking prices fell 2.0% month-on-month to £364,999.
- Aug 16, 2026Rightmove releases data revealing the biggest August fall since 2018; Rightmove cuts 2026 forecast to between 0% and -2%.
Who’s saying what
- Official
- Rightmove's property expert Colleen Babcock says sellers are 'pricing much more competitively from day one' to stand out in a market with the widest choice of homes in over a decade.
- Analysts
- Reuters notes that the average two-year fixed mortgage rate rose to 5.09% from 4.92% a month earlier, weighing on prices.
- Caution
- Spiked argues that the housing market faces a 'disaster' due to high mortgage rates and unaffordability, despite migration-driven demand.
Still unverified
The claim that the 'Burnham bounce' boosted buyer demand by 5% is based on Rightmove's internal data, which is not independently verified.