Latest: July property market report

July was a month of big news headlines, notably a new Prime Minister in Andy Burnham. Of note for the property market was the reappointment of Angela Rayner as Secretary of State for Housing. Matthew Pennycook stays as planning minister, for a degree of continuity.

The Government reshuffle was one of three reasons why Rightmove said the market stalled in July. A change of leadership, together with the World Cup and successive heatwaves, created a market full of ‘distracted buyers’ – people were more preoccupied with BBQs and Jude Bellingham than property.

Asking prices adjusted to demand

The statistics tell the full story. The UK’s new average asking price dropped 1%, with sellers asking £3,832 less in July when compared to June. The UK’s average asking price is now £372,359.

No shortage of homes for sale

This price adjustment is sensible in the current conditions. The portal said the number of homes for sale in July was close to a 12 year high. The result? More available homes competing for a prudent pool of buyers.

The focus remains on pricing right from the outset to avoid reductions. Rightmove’s data illustrates the importance. It found 74% of homes that sold and completed this year did so without having their price reduced.

July also proved a busy month for home-related energy efficiency. The Government made an interesting announcement. It revealed it will legalise plug-in solar panels for UK homes from 27th August 2026. 

The products have been widely available in mainland Europe and now UK residents will be able to generate their own electricity without needing a professional installation. Balcony-suitable panels will be available and this poses a grey area in terms of leaseholders needing permission from freeholders. It’s something we’ll report on as the situation becomes clearer.

Landlords are also evaluating the need for better energy efficiency, with many mindful of the compulsory EPC rating rising from E to C in 2030. Handelsbanken’s fifth annual Property Investor Report confirmed there is a sense of urgency. It found 89% of property investors are increasing the amount they’re allocating to sustainability features across their property portfolio.

Energy efficiency strikes a chord

The report also provided a window on the importance of energy efficiency features among tenants. High-level EPC ratings are now the most requested sustainability feature. In detail, tenants are looking for EV chargers, smart meters or smart home technology and solar panels, in order of popularity.

A leaning towards more energy efficient rentals was also uncovered when Paragon Bank analysed lending in the first half of its financial year. It found new buy-to-let lending worth £435.7 million was secured against properties with an A, B or C EPC rating. This is 7.7% up on the same period a year earlier.

Newly agreed rents increase

Energy aside, the UK’s rental market experienced its own heatwave. The latest HomeLet Index found June – its latest monitoring period – ran hot. The average UK rent for a newly agreed tenancy increased 1% to £1,353 per month. This is 3.4% more expensive than in June 2025.

Staying with the lettings market, it appears landlords and agents still have work to do when it comes to the Renters’ Rights Act. A report commissioned by The TDS Charitable Foundation found 69% of private sector tenants in England were unaware of, or did not understand, the Renters’ Rights Act just before it was introduced. Only 32% said they had heard of it and understood at least some of what it meant for them. We’re here to explain any new legislation if you’re unclear.

If you would like to know more about the Renters’ Rights Act and your local property market, please get in touch.