London stocks dip as Rightmove reports sharp August house price fall
FTSE 100 closes 0.3% lower while average asking price drops 2% to £364,999 in August
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Lower is better
London’s FTSE 100 index closed 29.81 points lower on Monday, a 0.3% decline, as rising oil prices and a lack of market catalysts weighed on investor sentiment. The broader FTSE 250 fell 0.7%, while the AIM All-Share dipped slightly to 800.75.
The decline came as Rightmove reported a sharper-than-usual fall in house prices in August. The online property portal said the average asking price for a newly-listed home dropped 2% month-on-month to £364,999, the largest August decline since 2018. Year-on-year, prices fell 1%, the steepest annual drop since December 2023.
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Housing market pressures mount
Rightmove attributed the drop to a combination of elevated mortgage rates, geopolitical uncertainty, and the upcoming October budget. The portal also noted that the number of available homes for sale reached a 12-year high for this time of year, further dampening price expectations.
Anthony Codling, an analyst at RBC Capital Markets, said the data led Rightmove to revise its 2026 house price growth forecast from a 2% increase to a range between flat and a 2% decline. Codling added that the market had seen a brief uptick in buyer demand following the Prime Minister’s appointment, but the summer remained subdued due to heatwaves and the World Cup.
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Housebuilders reflected the market’s weakness. Persimmon and Taylor Wimpey both fell 1.7%, while Barratt Redrow declined 1%. Tesco and Sainsbury’s also dropped ahead of Tuesday’s grocery market share data from Worldpanel UK.
Unemployment falls but economic data looms
The UK unemployment rate fell to 4.9% in the three months to June, down from 5.0% in May, according to figures from the Office for National Statistics. The rate had peaked at 5.2% at the end of 2025. Analysts at RBC Capital Markets expect a further drop to 4.7% when the next set of figures is released.
The Recruitment and Employment Confederation and KPMG reported that permanent job placements rose to 50 in July, ending a 45-month downturn. However, investors remain cautious ahead of key economic data this week, including Tuesday’s jobs and earnings figures and Wednesday’s inflation report.
Jemma Slingo, a pensions and investment expert at Fidelity International, said investors would be watching for signs of consumer spending trends. She noted that recent US retail sales data had been weak, and oil prices had edged higher amid tensions in the Middle East.
Oil and gold prices rise
Brent crude oil for October delivery rose to $89.07 a barrel on Monday, up from $87.94 on Friday. David Morrison, a senior market analyst at Trade Nation, linked the increase to uncertainty over US-Iran relations and the continued closure of the Strait of Hormuz.
Gold prices also climbed, supporting mining stocks. Endeavour Mining rose 2%, Fresnillo gained 1.7%, and Hochschild Mining increased 3.2%. The gold price reached $4,423.12 an ounce, up from $4,388.17 on Friday.
On the FTSE 100, the biggest risers included Endeavour Mining, up 84p at 4,195p, and Anglo American, which gained 78p to close at 3,928p. The biggest fallers were Howden Joinery, down 29p at 798p, and Diageo, which lost 60.5p to close at 1,703.5p.
What happens next
Tuesday’s economic calendar includes UK jobs and average earnings data, as well as Worldpanel UK’s grocery market share figures. Investors will also watch US industrial production data. On the corporate front, Synectics will release half-year results, and Cambridge Nutritional Sciences will publish full-year figures.
The housing market will remain under scrutiny as mortgage rates and inflation data could influence buyer sentiment. Rightmove’s revised forecast suggests a cautious outlook for the rest of the year, with a potential recovery in the autumn selling season.
Questions this report answers
+How much did house prices fall in August?
Rightmove reported that the average asking price of a newly-listed property fell 2% month-on-month in August to £364,999. This is the largest August decline since 2018 and the steepest annual drop since December 2023.
+What is the current UK unemployment rate?
The Office for National Statistics said the UK unemployment rate fell to 4.9% in the three months to June, down from 5.0% in May. Analysts expect it to drop further to 4.7% in the next set of figures.
+Why did the FTSE 100 fall on Monday?
The FTSE 100 closed 0.3% lower at 10,720.30 on Monday due to rising oil prices and a lack of market catalysts. Housebuilders and retailers also declined after Rightmove reported a sharp fall in house prices.
+What happens next for the housing market?
Rightmove revised its 2026 house price growth forecast to between flat and a 2% fall. Investors will watch Tuesday’s jobs data and Wednesday’s inflation figures, which could influence mortgage rates and buyer sentiment ahead of the autumn selling season.
News London Desk
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