Asking prices are forecast to fall by up to 2% this year, according to revised predictions from Rightmove, despite a brief uplift following the change in Prime Minister.
The property portal had previously forecast that asking prices would increase by 2% in 2026, but has now reversed its outlook as market conditions continue to favour buyers.
Market adjustment
Rightmove reported that asking prices dropped by £7,360 this month on average to £364,999. The larger-than-usual August decline reflects a shift in seller behaviour as vendors adjust expectations to match current market realities.
The forecast comes despite a 5% mini-bounce in activity following Andy Burnham’s arrival in Number 10. Rightmove noted that the new Prime Minister had brought a general boost to optimism, with his decision to rule out property tax changes in October’s Budget removing uncertainty for potential buyers.
Colleen Babcock, property expert at Rightmove, said the current buyers’ market reality is now being recognised by vendors. “This month’s larger-than-usual August price drop is a sign that many sellers are recognising the reality of the market and pricing much more competitively from day one,” she said.
Buyer advantage
Buyers currently have the widest choice of homes for sale at this time of year in more than a decade, according to Rightmove data. The portal’s analysis shows that sellers who price realistically are statistically proven to have the strongest chance of finding a buyer and successfully completing a move.
Some sellers are now making lower offers on their onward purchases when accepting reduced offers on their current homes, attempting to offset the difference in a market where negotiation has become increasingly common. The strategy reflects broader shifts in homeowner behaviour as market conditions evolve.
The downgrade in Rightmove’s forecast aligns with broader market indicators suggesting continued pressure on asking prices throughout the remainder of 2026, with competitive pricing becoming a key factor in successful sales.
