2026 growth forecast revised down from 2% to between 0% and -2%
Average house prices have seen the biggest August fall since 2018 despite an increase in buyer demand after Andy Burnham became prime minister, according to Rightmove.
The property site’s latest house price index (HPI) reported that the average asking price of a newly-listed property dropped by 2% (-£7,360) to £364,999 between July and August 2026.
Rightmove noted that there are currently more homes for sale than there have been at this time of year since 2014.
“This month’s larger-than-normal price fall reflects the reality of a market where buyers have plenty of choice and sellers are having to work harder to stand out and attract them.
“They’re also competing with an unusual number of distractions which have been keeping the minds of some potential buyers occupied, namely the World Cup and the hot weather,” said Colleen Babcock, property expert at Rightmove.
Since Andy Burnham became Prime Minister on July 20th, Rightmove data showed that buyer demand has increased by 5%.
Burnham’s announcement that he won’t be changing property tax in October’s budget “should help to give buyers more certainty into the autumn. However, it’s too early to say whether this could generate any lasting changes in the housing market.”
However, house price growth In the north of England is up by 1.5% compared with August 2025, while Scotland has seen a 1.1% year-on-year increase.
Rightmove has revised its 2026 national average asking price forecast down from an original 2% growth prediction to between 0% and -2%. This reportedly reflects mortgage rate movements, wider economic uncertainty and the potential impact of the forthcoming budget.
The website’s daily mortgage tracker showed that the average two-year fixed mortgage rate is 5.09%, up from 4.95% last month, as “uncertainty continues in the Middle East.”
Matt Smith, mortgages expert at Rightmove, said: “Confidence has taken a bit of a hit as fixed-rates remain elevated and return above the psychologically important 5% mark. However, the mortgage market remains highly competitive, with lenders still keen to attract business and support borrowers.
“Many lenders have built greater resilience into their pricing, meaning they are generally better prepared to absorb shorter-term market shocks, which gives movers more stability even during periods of uncertainty.”
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