Largest August price drop since 2018 despite mini Burnham bounce in demand.

Average newly-listed asking prices drop by 2.0% (-£7,360) this month to £364,999, a much larger than usual August drop:

• Many summer sellers slash their price expectations in reaction to the quieter holiday period and 12-year high number of homes for sale at this time of year

• Average prices are now 1.0% lower than a year ago, the largest annual price fall since December 2023

• However, the national average figure masks an increasingly divided regional picture for property price growth, with the year-on year difference between the northern and southern regions of England particularly stark, and Scotland is performing well:

• Prices in the north of England are up by 1.5% versus a year ago, while prices in the south of England are down by 1.8%

• The largest drop is in London, with prices down by 3.1% annually. The capital is seeing the largest choice of homes since 2010 leading to fierce competition among sellers to tempt buyers in the costliest part of Great Britain

• Since Andy Burnham became Prime Minister on July 20th, there’s been a mini bounce in buyer demand, up by 5%. Buying activity is still 10% lower than last year, but this boost could pave the way for a busier Autumn after the subdued summer

• The average two-year fixed mortgage rate is 5.09%, up from 4.95% last month as uncertainty continues in the Middle East

• Rightmove downgrades its national average 2026 price forecast to between 0% and -2%. The uncertain geopolitical picture, changing mortgage rate landscape, and new Chancellor’s first Budget in October making it difficult to predict the rest of the year.

Price & activity trend

Regional trends

Affordability trends

August 2026 Property Market: Why Pricing Correctly Matters More Than Ever.

The property market has entered a more competitive phase this August, with sellers facing increased stock, more cautious buyers and growing pressure to price their homes realistically from the outset.

The latest market figures show that the average newly listed property is now asking £364,999, following a 2.0% monthly fall in August. That represents a reduction of around £7,360 compared with the previous month.

For sellers preparing to come to market, the message is clear: getting the pricing strategy right from day one could make a significant difference to how quickly your property attracts serious buyers.

More choice means more competition

There are currently more properties available for buyers to choose from than at any point in August for more than a decade.

For sellers, this creates a competitive environment. Buyers can compare similar properties more easily, and an overpriced home risks being overlooked while better-priced alternatives attract viewings and offers.

This is why I always recommend looking beyond simply asking, "What price would I like to achieve?"

Instead, sellers should consider:

• What are comparable properties currently asking?
• What have similar homes actually sold for?
• How much competition is there in the local area?
• How quickly are comparable properties attracting enquiries?
• Does the asking price reflect current buyer expectations?
• What improvements or features genuinely justify a higher price?

A realistic asking price does not necessarily mean accepting less for your property. In the right circumstances, pricing competitively can create more interest, generate more viewings and potentially lead to stronger offers.

The market is becoming increasingly regional

One of the most important trends at the moment is that there isn't one single property market across the UK.

Different regions are experiencing very different conditions.

Prices in the north of England are performing more strongly, while southern England has seen prices move backwards compared with this time last year. London is experiencing particularly strong competition, with annual prices down by around 3.1%.

For homeowners, this reinforces the importance of local market knowledge.

National headlines can provide useful context, but your property's value ultimately depends on its location, condition, type, demand and the competition around it.

As an agent, my advice to sellers is therefore to focus on what is happening in your specific local market, rather than relying solely on national averages.

Buyers are still active – but they're selective

There has been some renewed activity in the market recently, with buyer demand increasing by around 5% in recent weeks.

However, activity remains below the level seen last year.

This suggests that buyers are still looking, but they are likely to be more selective about where they spend their money.

That makes presentation and positioning increasingly important.

A property that is competitively priced, well presented and marketed effectively has a better chance of standing out when buyers have plenty of alternatives available.

Mortgage rates remain an important factor

Mortgage affordability continues to influence buyer confidence.

The average two-year fixed mortgage rate has increased from 4.95% to 5.09%, adding another layer of uncertainty for prospective buyers.

For sellers, this matters because even a small change in mortgage costs can affect what buyers are comfortable paying.

If buyers are working within a strict monthly budget, an ambitious asking price can quickly put a property outside their affordability range.

This is another reason why sensible pricing can be so important in the current market.

Should sellers reduce their asking price?

Not necessarily.

A price reduction should not automatically be viewed as a negative. The bigger issue is whether the original asking price accurately reflected the current market.

If a property has been sitting on the market without generating meaningful interest, it may be time to reassess the strategy.

Before reducing the price, I would recommend reviewing:

1. The number of enquiries received
2. Viewing numbers
3. Feedback from potential buyers
4. How your property compares with competing listings
5. Recent local sales
6. Whether the marketing photographs and description are presenting the property effectively

Sometimes the issue isn't the property itself it is simply that the price, presentation or marketing isn't connecting with the current buyer pool.

What should sellers do this autumn?

The market could become more active as we move towards autumn, but there is still uncertainty around mortgage rates, economic confidence and upcoming financial announcements.

If you're thinking about selling, I would recommend preparing sooner rather than later rather than waiting for the "perfect" market.

The key is to enter the market with a clear strategy.

That means understanding your property's realistic value, presenting it properly, making sure your marketing reaches the right buyers and being prepared to respond to feedback.

The sellers who adapt to market conditions are likely to put themselves in the strongest position.

Our advice to sellers

The biggest takeaway from the August market is simple:

Don't let your asking price become the reason your property doesn't sell.

Buyers have more choice, and competition between sellers is increasing. A well-researched asking price can help your property attract attention from the right buyers rather than becoming another listing that sits on the market waiting for someone to make an offer.

If you're considering selling, I'd be happy to help you understand how your property should be positioned in today's market and what steps you can take to maximise your chances of achieving a successful sale.

Contact I Am The Agent today and take the first step towards selling your property with confidence.