The average asking price of a newly listed home fell by 1.0% in July 2026, shedding £3,832 to reach £372,359, the largest July decline recorded over the past decade according to the Rightmove House Price Index (July 2026). Rightmove attributes the dip to buyers distracted by the World Cup, a summer heatwave and a change of Prime Minister. For buyers who are mortgage-ready, that kind of movement in asking prices may open room to negotiate that simply was not there a few months ago.
July 2026 may favour prepared buyers. Asking prices fell by £3,832 (1.0%) to £372,359 on average, the steepest July drop in a decade (Rightmove HPI, July 2026). Sellers listing now are often motivated, which may give you more room to negotiate on price. Having a mortgage agreement in principle in place before you offer puts you in a stronger position to act quickly if a seller is ready to deal.
Rightmove's House Price Index for July 2026 shows the average asking price of a newly-listed home fell by 1.0%, or £3,832, to £372,359. That is a meaningful month-on-month drop, but the more striking detail is the context: the 10-year average for July is a fall of just 0.2%, so this July's decline is five times the seasonal norm, according to Rightmove's own data.
Rightmove describes it as the largest July fall in a decade. Asking prices are not the same as sale prices, and the gap between the two tends to widen when sellers are optimistic and buyers are cautious. But a shift of this size at the listing stage does signal something worth paying attention to, whether you are already searching or still deciding whether to move.
Rightmove's July 2026 HPI identifies three specific distractions pulling buyers away from property searches this summer: the World Cup, an extended heatwave, and a change of Prime Minister. Those are not factors a seller can control, but they do suppress demand at precisely the moment new listings arrive, which puts downward pressure on asking prices.
The pattern is not unusual in isolation. Summer has historically been a softer period for the market, and any one of those three factors might have nudged prices down slightly on its own. The combination arriving together appears to have amplified the effect well beyond what seasonal norms would suggest. For a buyer who has done their preparation, a quieter market with less competition is often a more comfortable place to operate than the frenzy of spring.
The average two-year fixed mortgage rate sits at 4.92% as of July 2026, according to Rightmove's daily mortgage tracker, compiled by Podium Solutions. That is down from 5.07% recorded in the June 2026 Rightmove HPI, which itself had fallen from 5.18% the month before. The direction of travel over recent weeks has been downward, though rates remain significantly higher than the 4.25% recorded in February 2026 before the Iran conflict introduced fresh uncertainty into global markets, as confirmed by Rightmove's HPI and Introducer Today.
Whether to fix now, and for how long, is one of the most common questions buyers face when rates are moving. There is no single right answer; it depends on your circumstances, your view of how rates may move, and how much certainty you want over your monthly payment. Our guides on whether a fixed rate mortgage is right for you and how long to fix your mortgage set out the main considerations without pushing you toward any particular product. If you prefer a rate that moves with the base rate rather than one locked in advance, it is also worth understanding how a tracker mortgage works before you decide.
| Period | Average two-year fixed rate | Source |
|---|---|---|
| February 2026 | 4.25% | Rightmove HPI / Introducer Today, July 2026 |
| June 2026 | 5.07% | Rightmove HPI June 2026 PDF |
| July 2026 | 4.92% | Rightmove daily mortgage tracker (Podium Solutions), July 2026 |
Source: Rightmove House Price Index and daily mortgage tracker (data by Podium Solutions), July 2026; Introducer Today, July 2026.
We search the whole market, handle the application and charge a single fee of £299 on formal mortgage offer.
Speak to a BrokerA 1.0% monthly fall to £372,359 in July, against a 10-year July average of 0.2%, means newly-listed sellers have already priced in some level of market softness. That starting point gives a buyer more room to have a conversation about price than would have been realistic in a busier spring market. (Rightmove House Price Index, July 2026)
The World Cup, heatwave and political change have kept buyers distracted, according to Rightmove's July 2026 HPI. Fewer active buyers means less competition on individual properties, which tends to favour those who are prepared and ready to move quickly.
The average two-year fixed rate fell from 5.07% in June to 4.92% in July, per Rightmove's daily mortgage tracker. That is a modest improvement, but in a market where affordability is already stretched, even a small rate reduction changes the monthly payment meaningfully. Rates remain above February 2026 levels and may move in either direction.
A seller who listed during a quiet period, against the backdrop of the largest July asking price fall in ten years, is likely aware that the market is not running in their favour right now. That awareness does not guarantee movement on price, but it does create the conditions for a more open negotiation than a seller who received three offers in the first weekend.
Negotiating on a property is easier when you have done the preparation first. A mortgage in principle gives you a credible position at the table: the seller and their agent know you have already started the process, which makes your offer more serious than one from a buyer who has not. If you are a first-time buyer, getting a sense of how much you may be able to borrow early removes one source of uncertainty before you start viewing.
On the negotiation itself, the data gives you a reasonable basis to ask. Asking prices across the market fell by an average of £3,832 in July alone, and sellers listing now are doing so against a backdrop of reduced buyer activity. Pointing to comparable sales rather than comparable listings tends to carry more weight with sellers, so your solicitor or a local estate agent may be able to help you identify what similar properties have actually achieved in recent months. Starting below the asking price and being clear about your position, whether that is chain-free, ready to proceed, or flexible on timing, gives a seller more reasons to agree.
The Rightmove figures cover asking prices, which are set by sellers. The price a property actually sells for may be higher or lower. In a softer market, the gap between the two tends to widen, but there is no guarantee any individual seller will accept below their asking price. Always base your offer on what you have seen comparable properties achieve, not on index data alone.
If this data has moved you from thinking about buying to actively considering it, the most useful thing you can do right now is understand what you can borrow and get a mortgage in principle in place. None of that commits you to anything, but it means that when you do find a property, you are not losing time at the start of a process where speed can matter.
At Woodhall Mortgages we are a whole-of-market broker, FCA-authorised (FRN 762513), based in Halifax. We look across the market to find the most suitable mortgage for your circumstances, handle the application from start to offer, and charge a single broker fee of £299, payable on receipt of your formal mortgage offer. If you are ready to understand eligibility and what your options look like right now, get in touch and we can start from wherever you are in the process.
A quieter July market with fewer competing buyers may give you more room to negotiate than the spring rush would have. Getting a mortgage in principle in place before you make an offer puts you in a stronger position. Start by understanding how much you may be able to borrow as a first-time buyer, then get in touch to understand eligibility with us.
If you have a property to sell, a softer asking price environment cuts both ways: your sale may achieve less, but the property you are buying may also be more negotiable. If your current mortgage is portable, it is worth understanding whether porting your mortgage makes sense alongside taking additional borrowing at current rates.
A drop in asking prices may improve the yield calculation on a potential purchase, particularly if you have been watching a specific area where prices have been stretched. Mortgage rates for buy-to-let remain elevated relative to early 2026, so running the numbers carefully on rental income against financing costs is essential before committing. Speak to us to understand eligibility across the buy-to-let market.
If you are mid-fix and wondering whether to move, it is worth understanding whether your current mortgage could move with you. Porting a mortgage is not always straightforward, but in a market where new fixed rates are higher than rates secured a few years ago, it may be worth investigating before you assume you need to remortgage entirely.
Woodhall Mortgages compares mortgages from across the full market for first time buyers, home movers, remortgages, buy to let and self-employed applicants. Whatever the headlines say, we will help you understand your own options clearly.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Speak to a BrokerWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. This article is for general information only and does not constitute regulated mortgage advice. All core facts are drawn from Rightmove's July 2026 House Price Index (rightmove.co.uk/news/house-price-index/), published July 2026, with the sole minor discrepancy being the prior month's mortgage rate cited as 5.07% in the article versus 5.08% on the live Rightmove HPI page — a 1bp rounding difference that does not materially affect the story. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: Rightmove House Price Index (July 2026), Rightmove House Price Index / Financial Reporter (July 2026), Rightmove House Price Index / Housing Today (July 2026), Rightmove daily mortgage tracker (data by Podium Solutions) (July 2026), Rightmove House Price Index / Introducer Today (July 2026), Rightmove HPI June 2026 PDF / Rightmove HPI July 2026 page (June–July 2026).
Buying a home or reviewing your mortgage can feel complicated, but it doesn’t have to be. A quick conversation can give you clarity on your options, your budget, and the next realistic steps. There is no obligation and no pressure, just straightforward guidance tailored to you. Complete the short form below and we will be in touch to help you move forward with confidence.
