house prices — British house prices have recorded a significant fall, with asking prices for newly advertised houses and apartments declining by 1.0 per cent in the four weeks leading up to July 11. This marked decrease comes during a period filled with distractions, including the men’s soccer World Cup and record-high temperatures.
House prices: Market Trends and Comparisons
The latest data from property website Rightmove indicates that this decline is noticeably larger than the typical 0.2 per cent fall observed during the same period over the past decade. Additionally, asking prices are now 0.4 per cent lower than they were a year ago, following a 0.5 per cent annual drop recorded in June.
Interest Rates and Borrowing Costs
Potential buyers are grappling with high borrowing costs, although the average two-year fixed mortgage interest rate has seen a slight decrease, falling to 4.92 per cent from 5.07 per cent in June. However, this rate is still an increase from 4.25 per cent in February, adding to the challenges faced by the housing market.
Sales and Inventory Levels
In the first half of 2026, sales agreed were 6 per cent below the levels seen a year earlier, although they mirrored the transaction volumes recorded in the first six months of 2024. Interestingly, the number of homes available for sale has decreased by 1 per cent compared to the previous year, yet it remains close to a 12-year high for this time of year.
