Revesto – INDEX
UK Housing Market Update – July 2026
Market Overview
The UK housing market in June and July 2026 showed a clear summer slowdown, with asking prices falling and buyers remaining sensitive to affordability. Nationwide reported that annual house price growth slowed to 1.8% in July from 2.2% in June, while monthly prices were broadly flat.
Rightmove reported that the average asking price of newly listed homes fell 1.0% in July to £372,359. The decline was considerably larger than the typical July fall and reflected strong supply, seasonal distractions and cautious buyer behaviour.
Key Highlights
- National Average Asking Price (July 2026): £372,359 (-1.0% MoM).
- Nationwide average UK house price: £277,542; annual growth 1.8%.
- Rightmove said available homes remained close to a 12-year high for the time of year.
- Around three-quarters of homes sold in 2026 had not required an asking-price reduction; homes requiring reductions took materially longer to sell.
- The regional pattern continued to favour northern markets over London and much of southern England.
National Average Asking Price by Market Sector (Excluding Inner London)
| Buyer Type | Average Price | MoM Change | YoY Change |
|---|---|---|---|
| First-time buyers | £226,120 | -0.6% | -0.3% |
| Second-steppers | £346,351 | -1.0% | -0.3% |
| Top of the ladder | £686,451 | -1.1% | -0.1% |
Source: Rightmove (July 2026)
Regional Performance
- North East and North West continued to show stronger annual resilience than London and southern England.
- HM Land Registry's July release subsequently showed UK prices up 0.7% month-on-month and 1.4% year-on-year, with the North East recording the strongest annual growth in England (+4.9%) and London the weakest (-3.3%).
- The divergence between asking-price indicators and completed-sale indices underlines the importance of distinguishing seller expectations from transaction prices.
Mortgage Market
Nationwide described market activity and prices as soft amid an uncertain economic backdrop. Mortgage affordability remained a key constraint, although wage growth relative to house prices was providing some support.
Rightmove reported that the average two-year fixed mortgage rate was around 5% during the summer, keeping affordability stretched. Buyers were increasingly sensitive to initial pricing and mortgage costs.
Outlook
The near-term outlook remained subdued rather than indicative of a disorderly correction. High supply, affordability constraints and economic uncertainty were likely to keep price growth modest.
For development projects, realistic acquisition assumptions and conservative exit pricing remained important, particularly in London and the South East where demand conditions were weaker.