The average asking price for newly-listed homes dipped by 1% in July to £372,359, as the heatwave and World Cup intensified the usual summer slowdown, Rightmove’s latest index shows.

Over the last ten years, asking prices have fallen by an average of just 0.2% in July and Rightmove believes this month’s steeper drop reflects the fact home sellers are having to compete for buyers’ attention against summer distractions.

Market activity levels remain below this time last year, with mortgage rate increases as a result of the war in Iran contributing to challenging conditions.

The number of sales agreed in the first half of the year was 6% lower than the same period in 2025, however it was level with the first half of 2024, indicating that many buyers are still being tempted if the property and price is right.

A competitive initial asking price is critical to a successful sale, rather than relying on a later price reduction, Rightmove says.

Its analysis of all homes sold so far in 2026 shows that nearly three-quarters sold without needing price reduction.

High levels of property listings mean sellers need to be particularly competitive on price.

Although the number of available homes for sale is 1% below this time last year, it is still very close to a 12-year high for this time of year. 

The summer is always a quieter time, as the holiday season disrupts or delays buyers’ plans, but this year the World Cup and the unusually hot summer have also contributed to lower activity levels.

Rightmove analysis shows that the first heatwave in May caused a temporary 8% drop in buyer demand, while June’s hot weather caused a similar temporary decline of 6%.

July’s heatwave prompted a 4% dip in demand.

Rightmove property expert Colleen Babcock says: “This month’s 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 and attract them. 

“They’re also competing with an unusual number of distractions which have been keeping the minds of some potential buyers occupied, namely the World Cup and the hot weather. 

“While these diversions are short-term, they are adding to what is already a distracting summer holiday period to create a challenging selling environment.”

She adds: “The first half of 2026 has been more challenging than many predicted, with the unexpected war in Iran contributing to higher mortgage rates and greater uncertainty for buyers. 

“While activity remains below last year’s levels, it’s encouraging that the number of sales being agreed in the first half of the year is in line with 2024.:

Propertymark chief executive Nathan Emerson says: “While the year initially started with optimism in the housing market, global unease has in many ways dominated the agenda ever since. 

“Rightly so, many consumers have been exercising greater caution with their spending to help ensure household budgets are better protected against unforeseen increases in expenditure.

“In recent months, we have witnessed mortgage borrowing dip significantly, alongside a lower volume of new mortgage approvals. 

“All eyes will be firmly focused on the Bank of England at the end of the month as it makes its next decision on the base rate, something that will very much set the tone, especially for those considering their next house move or who have tracker mortgage products.”