The average price of newly sold homes for sale saw its biggest fall in June in 14 years, Rightmove revealed.
This month the average price fell by 0.6% to £376,191, leaving prices 0.5% lower than last year.
While June usually sees modest price increases, with an average of 0.1% over the past 10 years, Rightmove suggests June’s decline means many new sellers are adjusting their price expectations in response to higher levels of competition and more price-sensitive buyers.
Summer is usually slower than spring, and many buyers are distracted by sporting events, holidays and better weather, so they need to be tempted by sellers with attractive prices.
However, national price trends do not always reflect regional and local market differences, especially where affordability pressures differ.
Prices have fallen across the southern regions of England and Wales, while more affordable northern areas such as the North East and Scotland are doing well compared to this time last year.
Rightmove data shows that property prices remain at historically high levels for this time of year, driving prices down as competition to attract buyers remains fierce among sellers.
In a market where choice is high and buyers are choosy, Rightmove notes that pricing correctly from the start is increasingly important, with more than a third of new listings coming to market not going on to sell.
May’s unusually hot start to the summer is earlier than normal this year, and it highlights that the World Cup could be a summer distraction for those leaving home.
The data also found that consumer demand throughout the month of May was down 10% year-on-year but remained broadly in line with previous data.
Meanwhile, the number of new homes listed for sale on the market is down 5% compared to this time last year.
However, the number of listings remains higher than in recent years, increasing by 6% in 2024 and 12% in 2023.
Despite the headwinds, sales activity remains stable overall, with agreed sales down 6% year-on-year, but largely in line with recent years, roughly the same as 2024 and 5% more than 2023.
Mortgage affordability has improved slightly this month, as Rightmove’s daily mortgage tracker shows that the two-year fixed rate has fallen to 5.07%, from 5.18% this time last month, reducing the average monthly payment.
about £30.
Rightmove’s property expert Colleen Babcock says: “Although the summer market has only just started this year, overall activity is still within the normal range.
“Sales activity remains stable, but it’s a very price-sensitive market with buyers looking for the right property at the right price. It’s encouraging to see a slight decrease in mortgage rates this month, which is a small step in the right direction for affordability and market sentiment. While prices remain high, even small changes in purchasing can make a difference to budgets and confidence.”
Commenting on the latest data, Propertymark chief executive Nathan Emerson says: “The latest figures suggest that the market is continuing to find a more sustainable balance, rather than suffering a loss of confidence. Buyers remain busy but are taking more time to make decisions, which means that realistically priced homes continue to attract strong interest.”
“National trends also mask significant regional differences, with local affordability, supply levels and ongoing demand and changing market performance. In many areas, particularly where stocks remain tight, well-presented and competitively priced properties are still selling well.”
Former Rics residential chairman Jeremy Leaf adds: “In fact and we confirmed in this data, we noticed a repeat of inquiries at the end of May/early June – more than we would have expected for the time of year.
“However, we are putting that improvement down to consumers agreeing to the fallout and duration of the Iran war rather than adding more heat from the sun.
“Demand may have picked up but generating a commitment to buy is proving as tricky as it has been since the outbreak of hostilities, given the amount of choice and continued uncertainty about the direction of travel for house prices and inflation.”
Meanwhile, MT Finance director Tomer Aboody comments: “There is a lack of confidence in the housing market as buyers are cautious and unwilling to pay high prices, especially when they have so much choice.”
“Affordability remains a key factor, as buyers, particularly first-time buyers, find it easier to access the platform across London and the south-east, particularly in the north of England, where prices are lower.”
