Britain's August asking-price discount hits a record as US builder confidence stays under 40
Rightmove recorded the largest August drop in British asking prices since 2018, while the NAHB housing market index rose to 35 and stayed below 40 for 16 months.
Economics & Markets··Night
Rightmove records the steepest August asking-price fall since 2018
The average asking price of a newly listed home fell 2 per cent, or 7,360 pounds, this month to 364,999 pounds, according to Rightmove data. It is the largest August drop since 2018. Rightmove reported that summer sellers are cutting prices during the quieter holiday period and that there are more homes for sale in August than at this time of year since 2014. Average prices are 1 per cent lower than a year ago, the largest annual drop since December 2023. Rightmove cut its 2026 forecast for average asking prices to between 0 per cent and minus 2 per cent, citing mortgage rate movements, wider economic uncertainty and the potential impact of the October Budget. Rightmove's daily mortgage tracker puts the average two-year fixed rate at 5.09 per cent, up from 4.95 per cent last month.[1]
US builder confidence inches to 35 after 16 months below 40
The National Association of Home Builders and Wells Fargo housing market index rose one point to 35 in August. While the index sits below 50, more builders see conditions as poor than good. NAHB chief economist Robert Dietz reported that August closed 16 straight months in which at least 30 per cent of builders said they had cut prices to support demand, and 16 consecutive months with the index below 40. The share of builders cutting prices fell to 35 per cent in August from 37 per cent in July, the average reduction stayed at 6 per cent and the use of sales incentives held at 63 per cent. The component measuring current sales conditions rose two points to 39, while sales expectations for the next six months held at 43 and buyer traffic at 23. Dietz said rising gasoline and diesel prices are pushing up material costs, while new home sales in the Midwest are up more than 2 per cent so far in 2026.[2]
The north of England rises as London falls; the US South and West stay weakest
The regional picture on Rightmove's August index is split: prices are up 1.5 per cent year on year in the north of England and 1.1 per cent in Scotland, while the south of England is down 1.8 per cent and London down 3.1 per cent. The capital has its widest choice of homes for sale since 2010. Buyer demand has risen 5 per cent since Andy Burnham became prime minister on July 20. On three-month moving averages for the United States housing market index, the Northeast fell one point to 44, the Midwest held at 45, the South fell two points to 31 and the West was unchanged at 27. The South and West remain the weakest regions even as the national headline index ticked up.[1], [2]
