The property giant said the average asking price dropped by £3,832 this month to £372,359, with buyers distracted not only by the traditional holiday season but also by the World Cup, unusually hot weather and political uncertainty.
Although the number of homes available for sale is 1% lower than at the same time last year, it remains close to a 12-year high for the time of year, giving buyers plenty of choice.
Rightmove’s analysis found buyer demand dipped by 8% during May’s heatwave, fell by 6% during June’s hot weather and dropped by a further 4% during the current July heatwave.
The housing market has also been affected by higher mortgage rates after the war in Iran pushed borrowing costs higher. The average two-year fixed mortgage rate now stands at 4.92%, up from 4.25% in February, although it has eased slightly from 5.07% last month.
The number of sales agreed in the first half of 2026 was 6% lower than in the same period last year, but was level with the first half of 2024, suggesting buyers are still prepared to move when homes are priced competitively.
Colleen Babcock, property expert at Rightmove, said: “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’re adding to what is already a distracting summer holiday period to create a challenging selling environment.”
Pricing correctly from the outset remains key in the current market. Rightmove found that 74% of homes sold and completed so far this year did so without an asking price reduction. Properties that required a reduction spent an average of 127 days on the market, compared with 36 days for those sold without one.
Despite the slower market, lenders continue to compete strongly for borrowers, wage growth remains ahead of house price growth and unemployment is low, supporting affordability.
Rightmove also argued that the arrival of a new prime minister is adding another layer of uncertainty to the market and called for housing to be made a priority, including reform of stamp duty to improve affordability and measures to support housebuilding. It warned that prolonged speculation over possible tax changes could cause some prospective buyers to delay moving.
