The average asking price for newly listed homes fell 1% to £372,359 in July after the heatwave and World Cup exacerbated the usual summer slowdown, Rightmove’s latest index shows.
Over the past decade, asking prices have fallen by an average of just 0.2% in July and Rightmove believes this month’s steeper fall reflects home sellers having to compete for buyers’ attention despite summer distractions.
The level of market activity remains below this time last year, with the rise in mortgage rates due to the war in Iran contributing to challenging conditions.
The number of sales agreed in the first half of the year was 6% lower than the same period in 2025, but at the same level as in the first half of 2024, indicating that many buyers are still tempted if the property and price are right.
A competitive initial asking price is crucial for a successful sale, rather than relying on a later price reduction, says Rightmove.
The analysis of all homes sold so far in 2026 shows that almost three quarters were sold without a price reduction being necessary.
The high supply of real estate means that sellers have to be extremely competitive on price.
Although the number of available homes for sale is 1% lower than this time last year, it is still close to a 12-year high for this time of year.
Summer is always a quieter time as the holidays disrupt or delay buyers’ plans, but this year’s World Cup and unusually hot summer have also contributed to lower activity levels.
A Rightmove analysis shows that the first heatwave in May caused a temporary drop in buyer demand of 8%, while warm weather in June caused a similar temporary drop of 6%.
The heat wave in July caused a 4% drop in demand.
Rightmove property expert Colleen Babcock said: “This month’s bigger than normal price fall reflects the reality of a market where buyers are spoiled for choice and sellers have to work harder to stand out and attract them.
“They are also competing with an unusual number of distractions on the minds of some potential buyers, namely the World Cup and the warm weather.
“While these diversions are short-lived, they add to what is already a distracting summer holiday period, creating a challenging sales environment.”
She added: “The first half of 2026 was more challenging than many predicted, with the unexpected war in Iran contributing to higher mortgage rates and greater uncertainty for buyers.
“While activity remains below last year’s levels, it is encouraging that the number of sales agreed in the first half of the year is in line with 2024:
Nathan Emerson, CEO of Propertymark, said: “While the year initially started with optimism in the housing market, global turmoil has in many ways dominated the agenda since then.
“Many consumers have rightly become more cautious with their spending to ensure household budgets are better protected against unforeseen increases in expenditure.
“In recent months we have witnessed a significant decline in mortgage lending, in addition to a lower number of new mortgage applications.
“All eyes will be firmly on the Bank of England at the end of the month when it makes its next decision on the base rate, something that will set the tone, especially for those considering their next move or who have tracker mortgage products.”