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Britain’s housing market is locked in its weakest August since 2018, as sellers slash their prices in search of a buyer.

New data from Rightmove this morning shows that the average price of a newly-listed home in Britain fell by 2% this month, to £364,999. That’s a drop of £7,360, much larger than in a typical August.

The decline means average asking prices are now 1.0% lower than a year ago, as mortgage rate rises in recent months have cooled the market.

In a further blow to sellers - but a boost to potential buyers! - Rightmove has cut its forecast for house price growth this year to between 0% and -2%, down from a previous forecast of 2% growth.

“The uncertain geopolitical picture, changing mortgage rate landscape, and new Chancellor’s first Budget in October making it difficult to predict the rest of the year,” it warns.

Today’s data also shows a widening North-South divide in the housing market over the last 12 months. Prices in the north of England are up by 1.5% compared with a year ago, while prices in the south of England are down by 1.8%.

“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.

Buyers have the widest choice of homes for sale at this time of year in more than a decade, so standing out on price for the right reasons is hugely important. While no seller likes to come to market lower than they might have hoped, Rightmove analysis shows that those who price realistically are statistically proven to be giving themselves the strongest chance of finding a buyer and successfully completing a move. One tactic some sellers are using when considering lower offers on their home, is to also make a lower offer themselves on their onwards purchase, to see if they can make up the difference.”

The largest house price drop is in London, with prices down by 3.1% annually.

Wealthy areas have seen the biggest drop - the new asking price of a home in the Royal Borough of Kensington and Chelsea has dropped to £1,552,970. A month ago, the figure was £1,648,148, a difference of just over £95,000.

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