July Property Market Analysis

July’s news was dominated by a new Prime Minister in England. Andy Burnham's first few days at the helm were closely watched by property experts. One of his first moves was to reinstate Angela Rayner as Secretary of State for Housing. Matthew Pennycook managed to hold on to his job as planning minister. 

Speculation already surrounds Burnham’s historic support for property tax reform. Past interviews suggest he is in favour of scrapping stamp duty and council tax, replacing them both with one annual land tax. It was another potential policy, however, that took centre stage in the Prime Minister’s opening week.

Rent controls off the cards

The BBC reported that in 2023, when Mayor of Greater Manchester, Burnham had called for rent freezes in the private rental sector. At the end of July 2026, however, Rayner confirmed rent freezes or controls are currently off the table. No doubt the Prime Minister will follow developments in Scotland, where rent control areas will be permitted some time in 2027.

Stamp duty inequality revealed

Devolved power also means Welsh and Scottish property buyers aren’t concerned about Burnham’s plans for stamp duty. The tax is, however, a concern in England. New Zoopla research revealed the unlevel playing field, thanks to house prices and buyer status.

Its July analysis confirmed almost 80% of London first-time buyers pay stamp duty. This compared to fewer than 1 in 10 across the North of England. Perhaps unfairly, 6 in 10 first-time buyers nationally pay no stamp duty at all.

When looking at those moving up the property ladder, it’s clear avoiding stamp duty is a first-time buyers’ privilege. More than 4 in 5 existing homeowners pay stamp duty in every English region, bar the North East.

While we wait to see how a refreshed Government reshapes buying and selling, of pressing concern is the current state of the market. Rightmove’s July house price index indicated the seasonal lull has started a little earlier than usual. It’s nothing new, with speculative buyers and the curious stepping back, leaving only the most genuine purchasers.

The portal said distractions took three forms. As well as the new Prime Minister, buyers were distracted by the World Cup and successive heatwaves. In fact, Rightmove has been monitoring how buyer demand reacts when the mercury rises.

Too hot to house hunt

It found May’s heatwave resulted in a temporary 8% drop in buyer demand, before rebounding. June’s heatwave saw a temporary dip of 6%, followed by a 4% drop during the July heatwave. Activity hasn’t fallen off a cliff, however. Rightmove says sales agreed for the first half of 2026 stayed level with those for the same period in 2024. 

While the temperature soared, asking prices cooled. The portal revealed the UK’s average asking price set by new sellers dropped 1% in July, to £372,359. It’s a clear sign that a realistic pricing message is getting through. Sellers questioning whether to aim ambitiously high should note that 74% of homes that have completed this year did so without having its price reduced.

New rents run riot

One area that’s running hot is rentals. HomeLet’s latest rental index revealed the cost of newly-agreed tenancies leapt 1% during its last monitoring period. New tenants across the UK are paying an average of £1,353 per month.

New rents in Scotland increased the most, rising 3.5% in four weeks. Wales followed behind, with new rents rising 1.8%. The North East was the best-performing English region, where rents increased 1.4%. Only the North West saw rents decrease – by a modest 0.2%  

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