Rightmove has reported the biggest drop in average house prices for any June in the last 14 years. The average price tag on a home fell by 0.6%, or £2,113, in June, bringing the average asking price across Britain to £376,191.
Unusual June Decline
Typically, June sees modest price increases, but this year the market has experienced a significant downturn. Rightmove suggests that May’s warmer weather may have kick-started the usual summer slowdown earlier than usual, while the World Cup could also be distracting potential home movers.
More affordable regions such as the North East of England and Scotland are seeing prices hold up relatively well compared to last year.
Expert Insights
Colleen Babcock, property expert at Rightmove, noted: “It’s unusual to see a price fall of this size in June. What’s different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market.”
She added that sellers need to set competitive asking prices from the outset as buyers are taking more time to compare options and are quick to move on if a home doesn’t stand out on value.
Mortgage Rates and Buyer Behavior
Higher mortgage rates continue to weigh on activity, squeezing household budgets. With more homes for sale, buyers are adopting a less urgent approach unless a property really stands out. Matt Smith, a mortgage expert at Rightmove, said: “It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets.”
Marc von Grundherr, director of Benham and Reeves in London, commented: “Buyers aren’t moving at the pace we’ve seen in previous years, largely because current market conditions and an oversupply of stock are affording them the luxury of both time and choice.”
Regional Perspectives
Henry Crane, a partner at James Laurence Estate Agents in Birmingham, said: “Overall, while demand remains, it is highly price-sensitive and selective, with the best-positioned homes continuing to perform strongly.” Matthew Harvey, a partner at Tayler & Fletcher in the Cotswolds, added: “Demand in the higher middle market remains steady, led by lifestyle and schooling needs. At the top end, price adjustments are largely a correction of earlier overpricing following the post-Covid surge.”
Rental Market Update
Separately, property firm Hamptons reported that the average price of a newly agreed let in Britain rose 1.1% over the year to May, slowing from a 1.2% annual increase in April. The average rent paid by a tenant moving into a property in Britain was £1,382 per month in May. In the South East of England, the average new let rent reached £1,500 per month, up 2.0% annually—the first time any region outside London has reached that level.
Aneisha Beveridge, head of research at Hamptons, said: “While rental growth on newly agreed lets remains cool by recent standards, landlords appear to be taking a more cautious approach when selecting new tenants. Many are showing a willingness to wait for the right tenant rather than accept the first offer, which has reduced the number of homes let and helped to keep a lid on rental growth for new tenants.”
