The average asking price of newly-listed homes for sale drops by 1.0% this month to £372,359
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Property market news
This price drop is more than we’d usually see in July as sellers try to tempt summer buyers distracted by the heat waves, World Cup football and a change of Prime Minister.
While seasonal price reductions are typical at this time of year, this month’s decline is significantly larger than the ten-year July average of 0.2%.
Increased housing supply, now close to a 12-year high for the season, is giving buyers more choice and creating greater competition among sellers. Seasonal factors, including summer holidays, major sporting events and periods of hot weather, have also had a temporary impact on buyer activity.
Looking ahead, the appointment of a new Prime Minister presents an opportunity to refocus on housing policy, including potential stamp duty reform and measures to support the delivery of more new homes.
Rightmove say - The first half of 2026 has brought some challenges for home-movers. The war in Iran pushed mortgage rates higher and the number of sales agreed from January to June was 6% lower than the same period in 2025.
However, sales agreed for the first half of 2026 stayed level with those for this period in 2024. This shows that buyers are still being tempted when they find the right property at the right price.
Prices
Over the last 12 months the average sales price in Bristol was £369,730.
32% of sales in the past 12 months were flats, achieving an average sales price of £278,689. Houses achieved an average price of £423,109.
The highest value recorded by the Land Registry over the past 12 months was £2,150,000 for a flat and £2,825,000 for a house.
House prices are forecast to grow by 1.6% in 2026 (HM Treasury Average of Independent Forecasts).
Demand
New Rightmove analysis shows how important it is to set a property’s asking price right from the start of the sales process. Nearly three-quarters (74%) of homes that have successfully sold and completed this year did so without having prices reduced.
Overall, conditions for buyers remain positive. Lenders are competing strongly on rates, wages continue to rise faster than house prices, and unemployment is staying low. This leaves room for optimism for the second half of 2026, particularly if mortgage rates drop and wages continue to grow faster than house prices.
Lettings update
Over the last 12 months, the average rent achieved for homes let in Bristol was £1,585 per month. This is a +3.6% change on the previous 12 month period.
68% of homes let in the past 12 months were flats, achieving an average rental value of £1,431 per month. Houses achieved an average rent of £1,989 per month.
31% of renters are aged Up to 21.
Mortgages
The average two-year fixed mortgage rates are currently 4.92%, higher than earlier in the year but slightly lower than last month. While recent geopolitical uncertainty has affected buyer confidence, the mortgage market remains competitive, with lenders continuing to offer a wide range of products.
Although the outlook for interest rates remains uncertain, any future reductions in mortgage rates would help improve affordability and support buyer confidence in the market.
Property market outlook
Market outlook for 2026: a more balanced market for buyers
As 2026 progresses, market conditions are becoming more favourable for buyers. Expectations are for steady, manageable growth, supported by improved choice and a market that rewards well‑prepared buyers who understand local values and act decisively when the right property comes along.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft by Price Hubble, Land Registry, ONS National House Price Index, DLUHC.