Asking Prices Drop 2% in Biggest August Fall Since 2018 – Full-Year Forecast Slashed
By Benjamin Owoicho Adah | August 31, 2026
The average asking price for a newly listed UK home fell by 2.0% in August—a drop of £7,360 to £364,999—marking the largest August decline since 2018. The fall is significantly sharper than the 10-year August average of -1.3%.
Key Data Points:
- Year-on-year asking prices are now 1.0% lower than August 2025, the steepest annual fall since December 2023
- Rightmove has slashed its 2026 forecast from +2% growth to between 0% and a 2% decline
- Homes available for sale hit a 12-year high for this time of year, giving buyers more choice and negotiating power
Regional Divide Widens:
|
Region |
Annual Change |
|
North West |
+1.9% |
|
Scotland |
Positive growth |
|
Midlands & Wales |
Marginally below 2025 levels |
|
London |
-3.1% (biggest drop nationally) |
London's housing market is the worst affected, with homes for sale reaching a 16-year high and prices now sitting 38% above the South East average. In some of the capital's wealthiest areas, prices have fallen by nearly £100,000 in a single month.
The "Burnham Bounce": Despite the price falls, buyer enquiries jumped 5% following Andy Burnham's appointment as Prime Minister on 20 July, compared with a 2% decline in the same period last year.