UK housing market cools with summer slowdown

The average price of homes listed for sale in Britain decreased by £3,832 month-on-month in July. This 1.0% fall was more significant than the usual average July drop of 0.2% over the past decade. Experts attribute this larger-than-normal decrease to significant summer distractions, including the World Cup and unusually hot weather, compounding the typical holiday season slowdown.

Currently, the market faces high supply, compelling sellers to work harder to attract buyers who have plenty of choice. Despite a slight dip in available homes compared to last year, inventory remains close to a 12-year high for this time of year. Mortgage rates have also risen significantly since the beginning of 2026, influenced partly by the conflict in the Middle East, which has dented buyer confidence.

Getting the initial asking price right is crucial for sellers. A remarkable 74% of homes sold this year completed without any reduction in their asking price. In contrast, homes requiring a price cut spend an average of 127 days on the market, compared to just 36 days for those sold at the initial listed price.