Revesto – INDEX
UK Housing Market Update – August 2026
Market Overview
The UK housing market remained subdued in August 2026. Nationwide reported that annual house price growth was broadly stable at 1.6%, with prices rising 0.2% month-on-month after seasonal adjustment. Activity remained constrained by economic uncertainty and elevated borrowing costs.
Rightmove recorded a larger-than-usual seasonal decline in asking prices, with the average newly listed property falling 2.0% to £364,999. The market had an unusually high level of available stock, giving buyers more choice and increasing pressure on sellers to price competitively.
Key Highlights
- National Average Asking Price (August 2026): £364,999 (-2.0% MoM; -1.0% YoY).
- Nationwide average UK house price: £275,465; annual growth 1.6%.
- Rightmove described the August fall as the largest August decline since 2018.
- Homes for sale were at a 12-year high for the time of year, while the average stock per agent was about 65 properties.
- London remained particularly weak, with Rightmove reporting a 4.4% monthly fall in asking prices.
National Average Asking Price by Market Sector (Excluding Inner London)
| Buyer Type | Average Price | MoM Change | YoY Change |
|---|---|---|---|
| First-time buyers | £225,525 | -0.3% | -0.3% |
| Second-steppers | £341,807 | -1.3% | -0.7% |
| Top of the ladder | £667,056 | -2.8% | -0.8% |
Source: Rightmove (August 2026)
Regional Performance
- North East asking prices remained comparatively resilient (+0.6% MoM; +1.7% YoY), while London recorded -4.4% MoM and -3.1% YoY.
- Northern England continued to outperform many southern markets, reinforcing the regional divide.
- The high level of stock meant buyers had greater negotiating leverage, especially where properties were initially overpriced.
Mortgage Market
Rightmove reported the average two-year fixed mortgage rate at 5.09%, up from 4.95% in July. Nationwide noted that geopolitical tensions and energy prices were exerting upward pressure on market interest rates.
Bank of England data later showed mortgage approvals for new purchases in August falling to their lowest level since December 2023, while the effective rate on new mortgages rose to 4.60%.
Outlook
August reinforced the view that the market was entering autumn with weak momentum. Price declines in asking-price data were partly seasonal, but the unusually high level of supply and elevated financing costs suggested continued buyer selectivity.
For Revesto projects, this environment favours conservative underwriting, disciplined acquisition pricing and strong attention to local demand rather than relying on broad UK house-price appreciation.