UK house prices fell about 2% month-on-month in August [1], marking the largest monthly decline since 2018 [1].
This shift suggests a significant cooling of the property market. The combination of rising supply and dampened demand may shift leverage from sellers to buyers for the first time in years.
Rightmove, the largest online property portal in the UK, reported that sellers are slashing asking prices as the number of homes for sale reaches a 12-year high for this time of year [1]. The data indicates that newly listed homes saw prices tumble by 2% or £7,360 month-on-month [3].
Market analysts said the decline is driven by a surge in listings that has pushed supply to record levels. At the same time, higher borrowing costs and concerns over inflation are reducing the number of active buyers [1], [2].
"House prices fell by about 2% in August, the biggest monthly decline since 2018, as sellers cut asking prices amid a surge in listings," a Rightmove spokesperson said [1].
The trend is visible across the United Kingdom, including in London, where the increased inventory is forcing a correction in pricing [1]. This volatility follows a period of sustained growth, but current economic pressures are now overriding previous demand trends [2].
Rightmove data analysis said, "Newly listed homes saw prices tumble by 2.0 per cent or £7,360 month-on-month, marking the sharpest August drop since 2018" [3].
“UK house prices fell about 2% month-on-month in August, marking the largest monthly decline since 2018.”
The sharp decline in August indicates a correction in the UK housing market driven by a supply-demand imbalance. While a 12-year high in listings provides more options for buyers, the simultaneous rise in borrowing costs limits affordability. This suggests that the market is entering a phase where price reductions are necessary to attract a smaller pool of qualified buyers.
