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UK housing prices see largest August fall since 2018
UK house prices experienced their largest August decline since 2018, with average asking prices for newly listed homes falling by 2% (£7,360) in the four weeks leading up to August 8. This drop outpaced the 10-year August average of 1.3%. The national average asking price currently stands at £364,999, which is 1% lower than the previous year.
The market shows significant regional divergence. While asking prices in the North of England rose by approximately 1.5% to 1.9% annually, prices in the South fell by 1.8%, and London saw a sharper annual decline of 3.1%. A high volume of available homes—at a 12-year high—combined with a summer slowdown has forced sellers to price more competitively.
Despite the price drop, buyer demand has seen a 5% increase following the appointment of Prime Minister Andy Burnham, though overall activity remains 10% lower than the same period last year. However, rising mortgage costs, with average two-year fixed rates climbing to 5.09%, and uncertainty regarding the upcoming October Budget have impacted market stability. Consequently, Rightmove has downgraded its 2026 house price growth forecast from a 2% increase to a range between flat growth and a 2% decline.
Additionally, data from Zoopla indicates a widening gap in sales speed, with many areas in England, Scotland, and Wales taking longer to find buyers due to elevated mortgage rates.
Entities
Andy Burnham · Colleen Babcock · London · North West of England · Rightmove · Zoopla
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] The August price drop was the largest since 2018. www.standard.co.uk · theintermediary.co.uk · www.independent.co.uk
- [● 4 SOURCES] The volume of available homes for sale has reached a 12-year high for this time of year. www.standard.co.uk · theintermediary.co.uk · www.independent.co.uk
- [● 4 SOURCES] The average asking price for a home in Britain is £364,999. www.standard.co.uk · theintermediary.co.uk · www.independent.co.uk
- [DISPUTED] Asking prices in London fell by 3.1% annually. www.standard.co.uk · theintermediary.co.uk · www.independent.co.uk
- [○ 1 SOURCE] The average 2-year fixed mortgage rate increased to 5.09% from 4.92% the previous month. theintermediary.co.uk
- [DISPUTED] Rightmove downgraded its 2026 house price forecast from a 2% increase to a potential 0% to 2% fall. www.standard.co.uk · www.independent.co.uk
- [● 2 SOURCES] Buyer demand rose by 5% following Andy Burnham becoming Prime Minister on July 20. theintermediary.co.uk
- [● 4 SOURCES] Average newly listed asking prices fell by 2.0% (£7,360) in August. www.standard.co.uk · theintermediary.co.uk · www.independent.co.uk