UK house prices drop 1% in July 2026 amid World Cup and heatwave

Rightmove’s July 2026 House Price Index shows the average asking price for newly‑listed homes fell by 1 % to £372,359, a £3,832 monthly decline that far exceeds the typical 0.2 % July drop over the past decade. The slowdown is attributed to a combination of factors: the FIFA World Cup, an unprecedented heatwave, high housing supply, rising mortgage rates linked to Middle‑East conflicts and the backdrop of a new Prime Minister.

Buyer interest dipped temporarily – 8 % in May, 6 % in June and 4 % in July – as heatwave conditions and the tournament distracted potential purchasers. Despite the number of homes for sale being 1 % below the same period last year, inventory remains close to a 12‑year seasonal high, intensifying competition among sellers. Rightmove notes that about 74 % of homes sold in 2026 did so without any price reduction, while those requiring a cut stayed on the market on average 127 days versus 36 days for unchanged listings.

Colleen Babcock, a Rightmove property expert, said the 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,” adding that the World Cup and hot weather are short‑term diversions adding to the usual summer holiday slowdown.