Rightmove Market Update: What It Means for You

After a record-breaking start to the year, the UK property market has shifted considerably. Rightmove’s latest figures paint a more cautious picture for the second half of 2026, shaped by rising mortgage rates, a record level of homes for sale, and ongoing geopolitical uncertainty. Here’s what the data shows and what it means if you’re buying or selling in Surrey.

The Headline Numbers

Average asking prices for newly listed properties fell 2% in August, bringing the national average to £364,999. That’s the largest August drop since 2018 and leaves prices 1% lower than at the same point last year — the steepest annual fall recorded since December 2023 (Rightmove, August 2026).

This follows a 1% fall in July, so the direction of travel is consistent. Rightmove has responded by revising its full-year price forecast downward, from a predicted rise of 2% to a range of 0% to -2%.

It’s worth noting how sharp the contrast is with January. At the start of 2026, average asking prices hit £368,031 — up 2.8% on December 2025 and the largest monthly increase on record for that time of year. The year began with real momentum. That momentum has since eased.

What’s Driving the Softening?

Several factors are pushing prices lower.

Mortgage rates are rising again. The average two-year fixed rate now sits at 5.09%, up from 4.95% last month. Earlier in the year, rates had fallen as low as 4.29% in January following cuts from major lenders at the end of 2025. That window has largely closed (Rightmove, August 2026).

Supply is at a twelve-year high. The number of homes available to buy is the highest it has been at this point in the year for over a decade. In London, buyers now have the largest choice of available properties since 2010. More supply means sellers must price competitively to attract serious interest.

Geopolitical uncertainty is a real factor. The conflict in Iran, which escalated unexpectedly in early 2026, has contributed to mortgage market volatility and made some buyers more cautious about committing to large financial decisions.

Regional Picture: London and the South

For Surrey sellers, the regional context matters. The south of England has seen asking prices fall by 1.8% over the past year, while London has dropped 4.4% in August alone, with annual prices down 3.1% compared with this time in 2025 (Rightmove, August 2026).

Surrey sits between these two markets, drawing buyers who want access to London but prefer lower density and more space. That position tends to offer some insulation from the sharpest London corrections, though the wider southern trend is still relevant for pricing expectations.

At the other end of the country, Scotland saw prices rise 4.3% in April compared with March — a reminder of how differently regional markets can behave within the same national picture.

Signs of Resilience

The data isn’t uniformly negative. A few figures stand out.

• Nearly three-quarters of homes that have sold so far this year did so without any asking price reduction.
• The average time to secure a buyer fell from 81 days in January to 60 days in May.
• New listings in the first half of 2026 were 13% higher than in 2024, yet the number of sales agreed was only 3% behind last year’s figures.

That last point is worth sitting with. More stock came to market, yet sales held up reasonably well. It suggests buyer appetite hasn’t disappeared — it’s just more selective.

The Political Factor

Since Andy Burnham became Prime Minister on 20 July, Rightmove has recorded a 5% increase in buyer demand. His confirmation that property tax will not change in October’s Budget has removed one source of uncertainty that was likely making some buyers hesitant. Whether that translates into sustained activity through the autumn remains to be seen, but it’s a more constructive backdrop than the market faced earlier in the summer (Rightmove, August 2026).

What This Means for Buyers and Sellers

The current conditions create different realities depending on which side of the transaction you’re on.

Pricing Correctly in Surrey

The risk in a market like this is over-optimism at the point of listing. Sellers who price based on the record figures from January — rather than the conditions buyers are operating in now — are likely to find their property sitting unsold while better-priced homes move.

The figure that matters most isn’t the national average asking price. It’s what comparable homes in your specific area are actually selling for, and how quickly. Those are local questions that require local knowledge.

If you’re thinking about selling or buying in Surrey and want a clear-eyed view of what current conditions mean for your situation, the team at Greenfield can help. Contact us to arrange a conversation.