Prices of newly listed homes in the UK recorded their sharpest August decline since 2018, despite a modest pickup in market activity following Prime Minister Andy Burnham’s arrival in office,
property website Rightmove said on Monday.
Average asking prices fell by 2.0% in the four weeks to August 8, compared with the 10-year average August decline of 1.3%. A seasonal slowdown and a 12-year record in the number of homes available for sale are putting downward pressure on prices.
Asking prices were 1.0% lower than a year earlier, marking the biggest annual decline since December 2023.
London recorded the steepest fall, with asking prices down 3.1% year-on-year, while prices increased in northern England.
Buyer demand has risen 5% since Burnham became prime minister on July 20, but remains 10% below the level seen a year earlier.
The average rate on a two-year fixed-rate mortgage increased to 5.09%, up from 4.92% a month earlier.
Rightmove cut its forecast for house-price growth in 2026 from 2% to a range of zero growth to a 2% decline, citing risks from geopolitical uncertainty, higher mortgage rates and the October budget.
The survey is based on asking prices for properties listed for sale between July 12 and August 8.
