Nikka Sulton

House sellers reduced their asking prices by an average of £3,832 in July as a combination of political uncertainty, higher mortgage rates and seasonal distractions slowed activity across England’s housing market, according to the latest Rightmove House Price Index.

The average asking price for newly listed properties fell by 1% during the month, bringing it down to £372,359. While house prices often soften in July, this year’s decline was significantly steeper than usual, exceeding the 10-year average monthly drop of just 0.2%.

Buyers Have More Choice

Although the number of homes available for sale is slightly lower than a year ago, buyers continue to benefit from a healthy level of choice. Rightmove reports that available housing stock is only 1% below last year’s level and remains close to the highest level recorded for this time of year in more than a decade.

With greater competition between sellers, pricing properties realistically from the outset has become increasingly important.

Rightmove’s property expert, Colleen Babcock, said the larger-than-usual fall in asking prices reflects a market where sellers need to work harder to attract buyers. She also pointed to distractions such as the FIFA World Cup and the recent spell of hot weather, which have temporarily shifted buyers’ attention away from the property market.

Housing Market Activity Slows

Several external factors have contributed to weaker market activity over recent months.

Rightmove found that buyer demand fell by 8% during the first heatwave in May before recovering, while June’s hotter weather led to a further 6% decline. The ongoing July heatwave has also resulted in a 4% drop in buyer activity.

Political and global uncertainty has added further pressure. The conflict involving Iran pushed mortgage rates higher, reducing affordability for many prospective buyers and creating additional caution across the housing market.

Sales Continue for Well-Priced Homes

Despite the slower market, buyers are still proceeding with purchases where homes are priced competitively and meet their requirements.

During the first half of 2026, the number of agreed house sales was 6% lower than during the same period last year, although activity remained broadly in line with levels seen in the first six months of 2024.

Encouragingly, almost three-quarters of properties sold so far this year completed without the need for any reduction in their original asking price.

Correct Pricing Makes a Difference

The data also highlights the importance of setting a realistic asking price from the beginning.

Homes that required a price reduction took an average of 127 days to secure a buyer, compared with just 36 days for properties that sold without any reduction.

This suggests that sellers who price accurately from the outset are more likely to achieve a quicker sale than those who initially overprice their property.

Mortgage Rates Remain a Challenge

Affordability continues to be influenced by mortgage costs.

The average two-year fixed mortgage rate currently stands at 4.92%, up from 4.25% recorded in February before global tensions pushed borrowing costs higher. Although rates have eased slightly from 5.07% last month, they remain well above earlier levels despite continued competition between lenders.

On a more positive note, Rightmove highlighted that wage growth continues to outpace house price growth, while unemployment remains relatively low, helping to support overall market confidence.

Looking Ahead

Industry experts believe the coming months will largely depend on economic stability and future interest rate decisions.

Nathan Emerson, Chief Executive of Propertymark, said global uncertainty has made many households more cautious with their finances, leading to fewer mortgage applications and approvals. Attention will now turn to the Bank of England’s next base rate announcement, which is expected to play an important role in shaping buyer confidence and housing market activity for the remainder of the year.

For now, the market remains active, but sellers are increasingly recognising that competitive pricing is essential in attracting buyers during a period of heightened uncertainty.