Rightmove August 2026 HPI: Asking Prices Drop 2% as Full-Year Forecast Falls to 0-2% Decline

Rightmove's latest House Price Index landed with a jolt: asking prices fell 2.0% in a single month, the sharpest August decline since 2018, and the portal has cut its full-year forecast.

Key Takeaways

• Price Drop Confirmed: Average new seller asking prices fell 2.0% (-£7,360) to £364,999, well below the 10-year August average of -1.3%.
• Forecast Slashed: Rightmove downgraded its 2026 prediction from +2% growth to between 0% and a 2% decline.
• North Outperforms: North West asking prices rose 1.9% year-on-year while London fell 3.1%, the widest gap this cycle.
• Demand Spike: Buyer enquiries jumped 5% following the Burnham appointment on July 20, compared with a 2% decline in the same period last year.

What Happened to Asking Prices in August 2026

The headline number is stark. Average new seller asking prices dropped 2.0% in August to £364,999, a fall of £7,360 in a single month. That is considerably larger than the 10-year August average decline of 1.3%.

Seasonal dips in August are normal. Sellers list before the summer, buyers go on holiday, and pricing adjusts. But this year the correction went further. Homes available for sale hit a 12-year high for the time of year, giving buyers more choice and more leverage to negotiate.

Year-on-year, asking prices are now 1.0% lower than August 2025, the steepest annual fall since December 2023.

Quick FAQ:

Q: Is a 2% monthly drop in asking prices unusual for August?

A: August typically sees a seasonal dip, but the 10-year average is -1.3%. This year's -2.0% is notably sharper, driven by a 12-year high in available stock and sellers adjusting expectations more aggressively.

Regional Data: North Rises While London Falls

The regional gap is the real story inside this report. North West England posted asking price growth of 1.9% year-on-year, while London fell 3.1%, the biggest drop nationally.

London homes for sale reached a 16-year high, with prices sitting 38% above the South East, the second most expensive region. At roughly 17 times the national average annual wage, London affordability continues to push demand outward.

Scotland also recorded year-on-year price growth. The Midlands and Wales sat marginally below last year's levels but fared better than the South.

For investors weighing location, the data reinforces a pattern that has been visible for months: northern cities are outperforming on both price resilience and rental yield.

Quick FAQ:

Q: Why are London house prices falling faster than the rest of the UK?

A: London is being squeezed from multiple directions: a 16-year high in available stock, prices 38% above the South East average, and the impact of higher stamp duty thresholds. Buyers have more choice and more reason to look elsewhere.

The Burnham Bounce and What It Actually Means

Since Andy Burnham was appointed Prime Minister on July 20, buyer demand has risen 5% compared with a 2% decline over the same period last year. The media dubbed it the "Burnham bounce."

Part of the uplift appears linked to the government confirming that stamp duty will not change in the October Budget. Fewer reasons to wait means more buyers entering the market now.

But the bounce needs context. Buying activity overall remains around 10% below last year's level. A 5% uplift from a lower base does not erase a wider slowdown, and mortgage rates have risen to 5.09% on a two-year fixed product, up from 4.92% the previous month.

Quick FAQ:

Q: Will the Burnham bounce last through the autumn?

A: The demand uplift is real but modest. With mortgage rates still above 5% and the October Budget approaching, sustained momentum will depend on whether rate relief arrives before buyer sentiment fades.

Rightmove Slashes Its 2026 Forecast

Rightmove entered 2026 predicting a 2% rise in average asking prices. That call has now been revised to a range of 0% to -2%.

The reasons are structural, not seasonal. Stock levels at a 12-year high mean sellers compete for a smaller pool of active buyers. Mortgage affordability has not improved as hoped, the Bank of England held at 3.75% in July with the next decision not until September 17. Geopolitical uncertainty and the approaching Budget add further hesitation.

For landlords and investors, the revised forecast is not necessarily bad news. Asking prices adjusting downward can improve entry valuations, and buy-to-let investors have been snapping up discounted stock, with 56% of investor offers in July coming at 10% or more below asking price.

Quick FAQ:

Q: Does a forecast downgrade mean property values will fall long-term?

A: Asking prices and sold prices are different measures. Rightmove tracks what sellers initially list at, not what properties actually sell for. A correction in asking prices often reflects sellers pricing more realistically, not a fundamental decline in property values.

What This Data Signals for Property Investors

Three signals stand out from this month's data.

First, location selection matters more than ever. The gap between the best-performing regions (North West at +1.9%) and the worst (London at -3.1%) is over five percentage points. Investors in Manchester, Birmingham and Leeds are seeing price resilience that London and the South East are not delivering.

Second, buyers have negotiating power. With stock at a 12-year high and sellers adjusting expectations, there is room to agree below asking price. Hamptons data shows 56% of investor offers in July were pitched at 10% or more below the listing price, with a 27% acceptance rate, up from 18% a year earlier.

Third, rental income is holding up separately from the asking price story. Average new-let rents hit £1,401 per month, up 1.9% annually, the fastest growth pace in 19 months. For yield-focused investors, falling entry prices combined with rising rents is exactly the compression that improves returns.

Explore: Obsidian, Manchester

A high-rise city centre development completing Q4 2026, offering studios, one, two and three-bedroom apartments from £250,000. Located in the heart of Manchester, Obsidian sits within the North West region that Rightmove's data shows growing 1.9% year-on-year while southern markets contract.

View Obsidian, Manchester >

The Bottom Line

Rightmove's August data confirms a recalibration, not a collapse. Asking prices are adjusting to reality, and for investors who focus on rental yield rather than short-term capital movement, the numbers are actually improving. Northern cities continue to outperform, and the gap between entry cost and rental income is widening in the buyer's favour.