August Property Market Analysis

The property market in August is always subdued as we let holidays take the main stage. For us, it’s a time to regroup, read the latest reports and ready ourselves for the September surge.

Everything we noted in August points to a sales market that has sensibly rebalanced. Encouragingly, there’s a greater emphasis on realistic pricing. The first indication came from Rightmove.

Sellers moderate asking prices

Its latest House Price Index showed the UK’s average asking price dropped -2% in August. In monetary terms, sellers revised their asking price downwards by -£7,360. Newly-listed properties are now advertised for an average of £364,999.

Up isn’t the only way

For those who have delayed buying a home due to their budget, Rightmove says homes are now 1% lower in price than they were a year ago. Looking at monthly trends, asking prices dropped in every region, except for the North East. The biggest decrease was in London (-4.4%), followed by the South East (-2.1%) and Scotland (-2%).

Despite asking prices revising downwards, values continue to rise over time – a point perfectly illustrated by Zoopla. It analysed data spanning the last decade and found the average cost of a UK house has risen 15.3% between June 2021 and June 2026. For the average homeowner, that’s £36,100 in added value.

What homeowners do need to get used to are house prices that don’t automatically rise every year. Zoopla’s analysis of 32 million values since 2021 showed just 14% of homes increased during every one of those five years. Economic instability means we should prepare for prices that stay the same for months, increase a little or even decrease some years.

When people are in a position to buy a home, it’s becoming more common to receive financial help from family. That’s the headline from new research released in August from The Private Office. Assistance with a property purchase was found to be the top reason (51%) for gifting money among the over 45s questioned.

The study also revealed 81% of respondents said wealth should be handed over to others during their lifetime, rather than become an inheritance. Among respondents overall, 88% said they would consider helping children or grandchildren buy a property, while 97% believe it is difficult, or very difficult, for young people to buy a home today without family support.

Excitement builds for first-time buyers 

If you’re in a position to afford your first home, another study pinpoints when, during the viewing phase, you’ll be the most enthusiastic. Law firm LPL interviewed 500 first-time buyers and found peak excitement occurred around the fourth or fifth property viewing. Just 20% of first-timer buyers felt excited on their first viewing, rising to 47% by viewing 4 or 5. Enthusiasm dipped to 30% at 6 to 10 viewings and to 25% at 11 to 20.

While asking prices have cooled during a hot summer, the same can’t be said of rents. HomeLet’s latest Rental Index revealed new tenants are now paying £1,369 per calendar month (pcm). That’s +1.2% - or £16 more – than the last monitoring period. 

Regional rises but affordability identified

Newly agreed rents increased the most in Scotland, rising 2.5%. The next biggest jump was in the South East (+1.4%), followed by the North West (+1.3%). The smallest rent increase was in the West Midlands (+0.2%).

For balance, Zoopla published its list of the most affordable areas in which to rent. It found the North East to be the UK’s cheapest region, with an average rent of £766 pcm. It was followed by Yorkshire and The Humber (£866 pcm) and Scotland (£885 pcm).

If you would like to know more about your local property market, please get in touch.