Asking prices for newly listed homes in Britain recorded their biggest August fall since 2018, despite a modest pickup in activity after Andy Burnham took office as prime minister, property website Rightmove said on Monday.
Average asking prices fell 2.0% in the four weeks to August 8. That was sharper than the 10-year average fall of 1.3% for August. A summer slowdown and a 12-year high in the number of homes for sale weighed on prices.
Asking prices were 1.0% lower than a year earlier, the biggest annual fall since December 2023. London saw the sharpest fall, with asking prices down 3.1% annually, but prices rose in the north of England.
Buyer demand has been up 5% since Burnham became prime minister on July 20, but was still 10% lower than a year earlier. The average two-year fixed mortgage rate rose to 5.09% from 4.92% a month earlier.
Rightmove cut its forecast for price growth in 2026 to flat or a fall of up to 2%, from 2% growth. It cited risks from geopolitical uncertainty, higher mortgage rates and October's budget.
The survey was based on prices of properties put up for sale between July 12 and August 8.
Editing by William Schomberg.
