UK asking prices barely above 2025 as higher mortgage rates squeeze buyers
Newly listed homes in Great Britain cost an average of £371,015, up 1% on the month but down 0.1% on the year, according to Rightmove's October 2026 index.
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Asking prices for newly listed homes in Great Britain rose by 1.0 per cent in October to an average of £371,015, but are 0.1 per cent below a year earlier. That is according to the index of property portal Rightmove, reported by The Intermediary and Estate Agent Today on 19.10.2026. Prices fell in four of the five lowest-priced regions, including the North East (-2.0 per cent) and Scotland (-1.9 per cent).
Higher borrowing costs are the main reason. The average two-year fixed mortgage rate is 5.55 per cent, up from 5.29 per cent a month earlier and 4.25 per cent before the war in Iran began in February. A typical new mortgage now costs around £250 a month more than in February. Rate rises are "really beginning to hit buyers' budgets", said Rightmove property expert Colleen Babcock.
In London, asking prices rose 2.5 per cent after a 6 per cent fall across July and August, but remain 1.7 per cent lower than a year ago, the weakest of any region. Sales agreed nationally are 8 per cent below last year and buyer enquiries are down 9 per cent, while the number of homes for sale is the highest for the time of year since 2014.
This article is for information only and is not legal, tax, financial or medical advice. Figures as of the date stated.