The Burnham Bounce impacted the UK housing market in August, with buyer demand up by 5% since the new Prime Minister started on July 20th. With the average asking price dropping and mortgage rates slightly up, read more about the latest developments in the property market.
In Brief
Nationally the market has seen –
- The average asking price of a newly-listed property dropped by 2.0% (-£7,360) this month to £364,999, according to Rightmove data. This is a much larger drop than is usually seen in August.¹
- Since Andy Burnham became Prime Minister on July 20th, buyer demand has increased by 5%.¹
- The average two-year fixed mortgage rate is 5.09%, up from 4.95% last month.¹
- Rightmove data also shows that average house prices are now 1.0% lower than a year ago, the largest annual price drop we’ve seen since December 2023.¹
- However, this average figure for the whole of Great Britain doesn’t reflect what’s going on at a regional level. House price growth for northern and southern regions of England are very different, with prices in the north of England up by 1.5% compared with a year ago.¹
- According to Zoopla UK house price growth has slowed to 0.9%, down from 1.3% in June.²
- Searches for homes are 7% higher than a year ago, their strongest annual increase for 12 months.²
- Sales agreed remain 6% lower than last year, although the gap is beginning to close.²
- Zoopla adds that buyers still have plenty of choice, with 5% more homes for sale than a year ago.²
In terms of the Welsh property market –
- The average house price in Wales is now £269,751, down 0.8% over the last month, and down 0.4% year on year¹.
- The average number of days for a Welsh property to find a buyer has increased slightly to 67¹.
¹Source – Rightmove
²Source – Zoopla
National Overview
Here is our monthly overview of the trends that Rightmove and Zoopla – two of the biggest names in the property market – have been seeing over the last month.
Rightmove’s Insights –
The first half of 2026 has been more of a challenge than predicted, according to Rightmove. Greater uncertainty and the conflict in Iran have contributed to higher mortgage rates, which has impacted the market. However, it is encouraging that sales agreed in the first half of the year were in line with 2024 numbers.
Rightmove says that since Andy Burnham became Prime Minister their data shows that buyer demand has increased by 5%. His announcement of no planned change to property tax in the October Budget is also helping give more certainty, but Rightmove says it’s too early to tell any lasting change this will have to the market.
In addition, Rightmove has revised its 2026 national average asking price forecast to between 0% and -2%, reflecting mortgage-rate movements, wider economic uncertainty and the potential impact of the October Budget, with realistic pricing remaining critical.
Zoopla’s Insights –
Zoopla says that more buyers have started their home search following a slower summer. It says sales agreed remain 6% lower than a year ago, but the gap is closing with searches now 7% higher than last year – the strongest annual increase for 12 months.
Late August into September often bring more price reductions, with sellers adjusting their expectations to attract buyers returning to the market after the summer. Searches are currently higher than a year ago across every part of the UK – the first time for this since August 2025.
With UK house prices increasing by 0.9% in the 12 months to July, down from 1.3% in June, Zoopla says that reduced buying power and fewer sales are pressurising price growth. Higher mortgage rates are a key impact, particularly in southern England among first-time buyers taking out longer-term mortgages.
Zoopla’s latest data shows the first signs of the autumn pick-up, however it warns that with plenty of homes to choose from and a steady flow of listings there’s continued pressure on sellers to price realistically.
Regional Insight from Cardigan Bay Properties
We specialise in the property market in West Wales and monitor developments here throughout the year to give you the best, most accurate advice. We cover the key regions of Ceredigion, Carmarthenshire and Pembrokeshire, and this month Tania Dutnell, one of our founders, outlines the key trends we’ve seen through August 2026. If you’d like to find out more please get in touch.
Here at Cardigan Bay Properties we’ve had another busy month. The hot weather definitely didn’t put buyers off, however the end of August saw the usual slowdown as people focused on preparing for the return to school.
Through August 2026 we carried out 17% more valuations and saw an 8% increase in the number of offers accepted. While viewings fell slightly (down 5%), new property instructions increased by 8% and new applicants registering with us increased by 19%.
We expect September to settle now that the schools have returned and buyer activity will increase now there’s time to focus on a house move rather than holidays or school.
Your Regional Insights
Please note that each month these figures are two to three months behind due to the Land Registry taking longer to register new sales, so this report shows figures from July 2019 (pre-Covid pandemic) to June 2026.
CEREDIGION
In June 2026 the average property price in Ceredigion fell significantly – down to £237,176, from £244,641 in May and a high of £252,873 in January of this year. The drop was seen across all of the different property types.
In terms of the percentage change over the last month, the average property price fell by 3.1%, with the smallest drop seen for flats which fell by 2.9%.
The yearly percentage change is a different story though, with the average property price up by 1.6% and the biggest growth seen for semi-detached properties with a 2.1% increase. Prices for flats however fell by 1.1% over the year.
View the full Ceredigion report.
PEMBROKESHIRE
Pembrokeshire also experienced a price drop in June 2026, with the average property price now £210,862 – down from £216,444 in May. Again, the drop has been seen across all property types.
The average monthly percentage change in Pembrokeshire is down 2.6%, following a 0.6% drop in May. The biggest drops of 2.6% were seen for detached and semi-detached properties, while prices for terraced properties fell by 2.5% and flats fell by 2.4% over the month.
The overall yearly percentage change is down 4.2%, with the biggest drops for flats (down 7%) and detached properties (down 4.5%). Semi-detached properties and terraced properties fell by 3.7% and 3.6% respectively.
View the full Pembrokeshire report.
CARMARTHENSHIRE
In contrast to our other regions, the average property price in Carmarthenshire increased to £197,547, up from £193,578 in May, with all property types seeing a rise in their price.
In terms of the monthly change the average property price was up 2.1% in June, compared to May 2026, with terraced properties and flats experiencing the largest rise – both up 2.2%.
The yearly change is particularly strong, with prices overall up 6.1% and the biggest increases seen for semi-detached properties, which were up 6.6%, and terraced properties, which were up 6.5%. Detached property prices experienced an increase of 5.4%, while prices for flats increased by 2.9%.
View the full Carmarthenshire report.
CURRENT UK HOUSE PRICE INDEX
*As of June 2026, the average house price in the UK is £272,188, and the index stands at 104.3. Property prices have risen by 0.1% compared to the previous month, and risen by 2.0% compared to the previous year.
*Details provided by the Land Registry. For more information on the House Price Index please CLICK HERE
Please note that the stats provided by the UK House Price Index are live and constantly evolving.
The information here is for guidance only. We always try to ensure that the information we provide is accurate at the time of publishing. The fast moving nature of the property market means that some information may be out of date when you read this article so please do your own research. We accept no responsibility or liability for any decisions you make based on this information.