The average asking price of a newly listed UK home has fallen 2.0% in August, the sharpest drop for the month in eight years as sellers compete for buyers in a market carrying unusually high levels of stock.
Rightmove said the average new-seller asking price declined by £7,360 to £364,999, compared with a ten-year average August fall of around 1.3%.
Prices are now 1.0% below their level a year ago, the largest annual decline recorded by the property portal since December 2023.
The national figure masks a pronounced regional divide. New-seller asking prices in northern England are 1.5% higher than a year ago, while southern regions are down by 1.8%. London recorded the largest annual decline at 3.1%, while the North West showed the strongest increase at 1.9%. Scotland was up 1.1%.
The number of homes available for sale is also at its highest level for the time of year since 2014, giving purchasers greater choice and increasing pressure on vendors to set realistic prices when properties first come to market.
Rightmove property expert Colleen Babcock said “buyers have plenty of choice and sellers are having to work harder to stand out and attract them.”
Asking prices typically weaken during the summer holiday period when some buyers and sellers delay decisions. This year’s 2.0% fall is considerably larger than the normal August decline, suggesting the seasonal slowdown is coinciding with softer underlying conditions.
Mortgage costs remain an important constraint. Rightmove’s mortgage tracker puts the average two-year fixed rate at 5.09%, up from 4.95% a month earlier. Rates above 5% increase monthly repayments for borrowers refinancing or buying with substantial mortgage debt and can reduce the price purchasers are able or willing to pay.
Buyer demand has nevertheless increased by 5% since 20 July, according to Rightmove, creating a mixed picture in which more people are looking while sellers face stronger competition from other listings.
The shift affects estate agents, lenders, housebuilders, and businesses connected with housing transactions. Asking prices do not measure completed sale values, but they provide an early indication of the expectations sellers are bringing into the market.
When supply is high, an unrealistic initial price can extend marketing periods and eventually lead to reductions. Rightmove said nearly three-quarters of homes sold so far this year nevertheless achieved a transaction without the asking price being cut, suggesting correctly priced properties continue to attract buyers.
Regional divergence complicates the national picture further. Stronger pricing in northern England contrasts with falling asking prices across the south, reflecting different affordability levels, local employment markets, housing supply, and exposure to higher-value mortgage borrowing.
Developers therefore face markedly different conditions between regions. Housebuilders operating in stronger markets may have greater room to maintain prices, while businesses in softer areas can face pressure to use incentives, slow the pace of construction, or become more selective about new sites.
The data lands alongside a wider attempt to increase housing supply through planning reform. Government proposals published this week would strengthen support for higher-density housing around well-connected stations, while separate industry data has shown planning approvals remaining weak.
More planning permissions do not automatically translate into higher construction volumes if buyers cannot afford the finished homes. Housing supply therefore remains closely connected with mortgage rates, wages, construction costs, development finance, and transaction demand.
The consequences extend beyond residential property. Home moves generate activity across conveyancing, surveying, removals, furniture, renovation, insurance, utilities, and mortgage services. Lower transaction volumes can therefore affect a broad surrounding business ecosystem even where headline house prices remain relatively stable.
Lenders face a different balance. Higher mortgage rates can support margins on new lending but weaken affordability and transaction activity, leaving banks and building societies competing for borrowers while managing the credit risks created by more expensive finance.
For sellers, the current market rewards pricing discipline. A large number of available properties gives buyers greater opportunity to compare alternatives and negotiate, particularly in regions where asking prices have already weakened year-on-year.
August remains a seasonally quiet month, and activity can change as the autumn market begins. The next readings will show whether this month’s unusually steep fall was predominantly seasonal or the start of a more persistent adjustment in seller expectations.
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