gg2

UK house prices fall, oil prices rise

Archived — this story has rotated out of today’s deck. It is kept here in full.

The gist

UK house asking prices fell 2% in August to £364,999, the biggest drop since 2018. Oil price rises and higher mortgage rates are cooling the market.

Background

The UK housing market is experiencing a slowdown as mortgage rates have risen, cooling demand. Rightmove's data shows a larger-than-usual August price drop, with sellers pricing competitively. Geopolitical uncertainty and the upcoming October Budget add to the unpredictability.

How it unfolded

  1. Jul 12, 2026Rightmove survey period begins for properties put up for sale.
  2. Jul 20, 2026Andy Burnham becomes prime minister, leading to a modest pickup in buyer demand.
  3. Aug 8, 2026Survey period ends; asking prices fell 2.0% in four weeks to this date.
  4. Aug 16, 2026Rightmove reports the biggest August fall since 2018, with prices 1.0% lower than a year earlier.

Who’s saying what

Official
Rightmove's Colleen Babcock says sellers are pricing competitively to attract buyers in a market with wide choice.
Analysts
Carl Weinberg of High Frequency Economics notes that low inventories and high mortgage rates are preventing sales.

Sources

See today’s stories in the app gg2 — free on the App Store