July 2026 saw a drop in asking prices according to Rightmove, with this summer’s heat waves, the World Cup and a change of Prime Minister, each playing a role in the fall. Read more in this month’s House Price Index overview.
In Brief
Nationally the market has seen –
- The average asking price of newly-listed homes for sale drops by 1.0% (-£3,832) this month to £372,359.¹
- This price drop is more than we’d usually see in July (0.2% average over the past 10 years), as sellers try to tempt summer buyers distracted by the hot weather, World Cup and a change of Prime Minister.¹
- Sellers are having to compete harder to attract summer buyers. The supply of available homes is close to a 12-year high for the time of year, giving buyers plenty of choice.¹
- Activity in the housing market is lower than it was this time last year (-6%) but level with the first half of 2024, showing that people are still buying when the property and price are right.¹
- Rightmove analysis shows that the first heatwave in May caused a temporary 8% drop in demand from buyers before rebounding. June’s heatwave caused a similar temporary dip in demand of 6%, followed by a 4% drop during the July heatwave.¹
- New Rightmove analysis shows how important it is to set a property’s asking price right from the start of the sales process. Nearly three-quarters (74%) of homes that have successfully sold and completed this year did so without having prices reduced.¹
- Sales agreed are 9% lower than last year, as higher mortgage costs and uncertainty cause some buyers to pause.²
- More choice for buyers is creating greater room for negotiation, with 30% of homes listed since Q2 still unsold without a price reduction.²
- Zoopla expects activity to pick up from September, provided mortgage rates remain stable.²
- The average UK home has increased in value by £3,400 this year, but performance varies widely by region.²
In terms of the Welsh property market –
- The average house price in Wales is now £272,021, up 0.2% over the last month, and up 0.4% year on year¹.
- The average number of days for a Welsh property to find a buyer has remained at 66¹.
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 –
Rightmove’s take on this month’s developments is that the larger than normal price fall is reflective of the market – buyers have plenty of choice and sellers have to work to stand out from the crowd and generate interest.
Add to this the busy nature of this summer – with the World Cup and continuous hot weather and some potential buyers have put their house hunt on hold.
They highlight that the first six months of the year have been more of a challenge than predicted. The war in Iran has impacted cost of living and has been a contributor to increased mortgage rates and uncertainty for buyers. It adds that despite these challenges, the fact that the number of sales agreed in the first half of 2026 is similar to 2024 figures is encouraging.
Finally, it reiterates a message from past months – that property pricing is crucial in the current market. Nearly three quarters of homes that sold this year have been sold without a price reduction, thanks to sellers pricing effectively.
Zoopla’s Insights –
Zoopla says that there has been a sharper than usual slowdown for summer, with July recording the weakest activity level of 2026. As a result, some buyers are taking a wait and see approach to moving.
Mortgage rates, which had eased slightly, nudged back up to around 4.75% in July due to global uncertainty, which increased borrowing costs.
Zoopla adds that the balance between buyers and sellers is shifting in many parts of the UK, due to more homes coming onto the market. They say that with September traditionally one of the busiest months for buyers they expect activity to pick up again this year.
Like Rightmove, they say that it will be sellers who price realistically that are likely to benefit most. They add that the proportion of homes that have a price reduction of 5% or more also peaks in September as sellers adjust in line with the current market. The strength of any autumn recovery will also depend on mortgage rates, with any increases potentially delaying an increase in buyer confidence.
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 July 2026. If you’d like to find out more please get in touch.
While the number of valuations we carried out in July 2026 fell slightly compared to July 2025, it has been another incredibly busy month for our team. The number of viewings we carried out increased by 20% and the number of offers accepted increased by an amazing 67%, underlining the strong level of demand we’re seeing across our regions.
The number of new property instructions fell a little – by 12% – but the number of potential buyers registering with our agency increased by almost 20%, so while some other regions of the UK may be seeing a slowdown we’re still very busy with buyers looking to move to – or within – West Wales.
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 May 2026.
CEREDIGION
The average property price in Ceredigion dropped from £248,512 in April to £243,343 in May 2026, with all property types seeing this significant drop.
The monthly percentage change was a drop of 2.1%, with the biggest drop seen for flats, which fell by 2.6%, followed by semi-detached and terraced properties, which both fell by 2.10%, and detached properties, which fell by 2% over the month.
However, over the year property prices in Ceredigion rose 7% overall, with detached properties experiencing an increase of 7.6%’ semi-detached properties 7.2%; terraced properties 6.5% and flats up 2.5%.
View the full Ceredigion report.
PEMBROKESHIRE
In contrast to Ceredigion, the average property price in Pembrokeshire in May 2026 increased slightly to £220,318 (up from £219,577 in April). All property types reported an increase except flats which saw a very small drop – down to £115,319 from £115,324 in April.
The monthly percentage change shows a small 0.30% increase across all property types, with terraced properties showing a slightly higher increase at 0.40%, while flats showed no increase over the month.
The yearly percentage change however shows a small drop of 0.30% across all property types. This is driven by flats which fell by 4.7%, while terraced properties fell by 0.10% and both detached and semi-detached properties show a small 0.10% increase over the year.
View the full Pembrokeshire report.
CARMARTHENSHIRE
In Carmarthenshire property prices were very stable – in July 2026 the average property price was £195,515 compared to an average of £195,513 in June. This stability was consistent across all property types, with flats seeing a slight drop – down to £92,167 in July from £92,322 in June.
That’s reflected in the monthly percentage change, with no change for detached, semi-detached and terraced properties, but a small drop of 0.20% for flats.
However, the yearly percentage change is positive – up 4.7% overall. Semi-detached properties saw the biggest % increase – up 5%, followed by detached properties (up 4.6%), terraced properties (up 4.5%) and flats (up 0.5%).
View the full Carmarthenshire report.
CURRENT UK HOUSE PRICE INDEX
*As of May 2026, the average house price in the UK is £271,295, and the index stands at 104.0. Property prices have risen by 0.3% compared to the previous month, and risen by 2.7% 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.