A July dip in asking prices isn't unusual — but this year's is. The latest UK house price index shows a fall far steeper than the seasonal norm, and a mix of football, heat, and politics appears to be behind it.
At a glance:
Rightmove's index measures the asking prices of homes as they're newly listed for sale, rather than completed sale prices. That makes it one of the earliest available signals of market direction — typically running ahead of mortgage-completion measures like Halifax and Nationwide, and well ahead of Land Registry data based on finalised transactions.
Several things appear to be layering on top of each other this month. An unusually large pool of homes for sale — supply is close to its highest level in twelve years — means buyers have plenty to choose from and little pressure to act quickly. On top of that, a run of summer heatwaves has repeatedly knocked buyer activity: Rightmove's own analysis links each of the last three heatwaves to a temporary drop in demand, with the effect fading a little each time but still noticeable in July.
Add to that a packed sporting calendar and a change of Prime Minister, and it's easy to see why buyer attention has been pulled elsewhere this summer. Rightmove's Colleen Babcock said the scale of this month's fall reflects a market where sellers are having to work harder to stand out and attract buyers</cite> who have no shortage of alternatives.
Pricing discipline is proving to matter more than ever. Data shared alongside the index suggests roughly three-quarters of homes that sell do so without ever needing a price cut — and those that don't need a reduction tend to find a buyer far faster than those that do.
There's a little relief for buyers on the borrowing side. The average two-year fixed rate has edged down to 4.92%, continuing a gradual decline from June's 5.07%. It's still some way above the low of around 4.25% seen back in February, and geopolitical uncertainty means further movement in either direction remains possible. Even so, the direction of travel this summer has generally been downward, which should help take some pressure off buyers close to their affordability ceiling.
Unlike some recent months, July's price falls were widespread rather than concentrated in one or two areas. London recorded the steepest monthly drop of any region — down around 1.6% to roughly £676,248 — while the North East also saw a sharp fall of about 2.0%. Only three regions bucked the trend with small gains: Yorkshire and the Humber, the North West, and Wales each edged up, though by less than half a percent apiece.
The broader pattern is a familiar one this year: cheaper regions in the north and in Wales continue to hold up better than London and the south, even in a month where nearly the whole country saw prices soften.
Rightmove's sector breakdown (excluding inner London) shows second-stepper homes — typically three- and four-bedroom properties — absorbed the biggest monthly fall this July, down around 0.9%. Top-of-the-ladder homes slipped roughly 0.5%, while typical first-time-buyer properties eased about 0.6%. That spread suggests this month's price pressure wasn't limited to any one part of the market, though the middle of the ladder took the brunt of it.
None of this points to a market in trouble. Sales are still completing, mortgage rates are drifting lower rather than higher, and the underlying story remains one of abundant choice rather than collapsing demand. What's changed is leverage: with this much stock available, buyers can afford to wait for the right price, and sellers who don't price accurately from the outset risk being overlooked entirely.
What's the average UK house price in July 2026?
£372,359, based on newly listed asking prices — down 1.0% from June.
Why did prices fall so much this July?
A combination of near-record housing supply, repeated heatwaves dampening buyer activity, the World Cup, and a change of Prime Minister all pulled attention away from home-moving this summer.
Are mortgage rates falling?
Yes — the average two-year fixed rate eased to 4.92% in July 2026, down from 5.07% in June, though still above February's low of around 4.25%.
Which region fell the most?
London, down roughly 1.6% on the month to around £676,248, with the North East close behind at around 2.0%.
Which regions saw prices rise?
Yorkshire and the Humber, the North West, and Wales were the only regions to post monthly gains, each under 0.5%.
Figures are drawn from Rightmove's House Price Index, published 20 July 2026, and subsequent reporting on the release. Rightmove is not authorised to give financial advice — speak to a regulated mortgage adviser before making financial decisions.
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