First annual drop in UK house asking prices since January 2024

Rolling coverage of the latest economic and financial news

The cost of renting a property in Great Britain has also dipped this summer.

Estate agent Hamptons reports that newly agreed rents in Great Britain fell -0.4% year-on-year in August 2025 to £1,387 per calendar month, a saving of £6 per month.

For the ninth month in a row, rents have risen more slowly than inflation—offering tenants a rare moment of financial respite. While the monthly savings may seem modest, they mark a significant shift in the rental market’s role in driving inflation.

“Over the longer term, rents have consistently outpaced inflation, which means tenants today are paying more than they would have if rents had simply tracked CPI. For the most part, this has mirrored the rising cost pressures facing landlords. But this recent slowdown suggests the market is recalibrating. With affordability stretched and demand softening, landlords are having to adjust to attract tenants.