Hertfordshire housing market update

The World Cup, unusually hot weather and the traditional summer holiday season have all contributed to softer activity. Political uncertainty and higher borrowing costs have also encouraged some buyers to pause and wait for greater clarity.

With uncertainty surrounding future tax and housing policy, some buyers and sellers are also choosing to see what emerges from the Government’s autumn Budget before making their next move.

But while activity has slowed, the underlying market remains relatively resilient.

Property Market: More Choice for Buyers

Rightmove’s latest House Price Index reported that the average asking price of a newly listed property fell by 1% during July to £372,359.

A summer slowdown is entirely normal, although this year’s fall was greater than the average July decline of just 0.2% recorded over the previous ten years.

The weather appears to have played a role. Rightmove recorded falls in buyer demand during each recent period of particularly hot weather, reinforcing the view that at least some of the slowdown has been seasonal rather than a fundamental change in market conditions.

For buyers, one of the biggest changes is the amount of choice available.

The number of properties available for sale is now close to a 12-year high for this time of year, meaning sellers are having to work harder to capture buyers’ attention.

This makes pricing and presentation more important than ever.

In a market where buyers can afford to be selective, properties that are correctly positioned from the outset and presented exceptionally well are more likely to generate meaningful interest.

House Prices Remain Relatively Resilient

Despite softer activity, there is little evidence of a significant correction in house prices.

Nationwide reported a 0.1% increase in July, although annual house-price growth eased from 2.2% to 1.8%. Lloyds, meanwhile, reported broadly flat prices.

Regional variations remain considerable. Parts of northern England and Northern Ireland have continued to perform more strongly, while London and the South East have remained comparatively subdued.

There are also reasons to be cautiously optimistic as we move towards the autumn market.

Wage growth continues to support affordability, employment remains relatively resilient, and greater competition between mortgage lenders could provide additional support to buyers.

For sellers, however, the message is clear: simply listing a property and waiting is not enough.

Realistic pricing, exceptional presentation, proactive marketing and experienced negotiation are becoming increasingly important.

Buy-to-Let & Lettings: Rental Growth Strengthens

The rental market continues to tell a different story, with rental growth strengthening again during July.

According to the latest HomeLet Rental Index, average UK rent rose 1.2% in July to £1,369, taking annual rental growth to 4.3%.

It was the fifth consecutive monthly increase.

Interestingly, rising wages are helping to offset some of the impact of higher rents. Tenants starting new tenancies spent an average of 32.4% of their income on rent during July, compared with 32.7% in June.

However, the bigger issue remains supply.

Rental Supply Remains Under Pressure

Rightmove reported that the number of properties available to rent during the second quarter was 1% lower than a year earlier.

This represents the first annual decline in rental supply since 2022, with fewer new properties coming onto the market.

London has experienced particularly strong rental growth. Average rents have increased by 6% over the past year to £2,207, bringing them close to the previous peak recorded in October 2025.

There are, of course, considerable regional differences, but the broader picture shows continued pressure on rental supply.

The introduction of the Renters’ Rights Act also means landlords are navigating an increasingly complex regulatory environment.

Whether the new legislation encourages further landlords to leave the sector — and consequently places additional pressure on rental supply — will become clearer over the coming months.

For professional landlords, however, constrained supply can also create opportunity.

Well-presented, correctly priced properties in desirable locations continue to attract strong tenant interest.

The Rolstons View

The summer market has undoubtedly been quieter, but quieter does not mean inactive.

We are continuing to see committed buyers transact when the right property comes to market at the right price. What has changed is that buyers have more choice and are therefore less inclined to compromise or overpay.

As we approach the traditionally more active autumn period, we expect September and October to provide a much clearer indication of the market's underlying strength.

For anyone considering selling or letting, this makes good advice at the outset particularly important.

Understanding the latest comparable evidence, current buyer demand and how best to position a property can make a considerable difference to the eventual result.

If you are considering a move and would like an up-to-date assessment of your property’s value, the Rolstons team would be delighted to help.

01923 775000 | sales@rolstons.co.uk