UK house prices experienced their steepest June decline in 14 years, according to new data from Rightmove. The average asking price dropped by 0.6%, equivalent to £2,113, bringing the typical price across Britain to £376,191. Typically, June sees modest price increases, with a 0.1% average over the past decade, the property website noted.
Reasons for the Decline
Rightmove attributed the unusual fall to a combination of factors, including warmer May weather and the World Cup, which may have accelerated the usual summer slowdown. Additionally, higher mortgage rates continue to squeeze household budgets, and a greater selection of homes for sale is prompting buyers to take a more leisurely approach.
Colleen Babcock, property expert at Rightmove, commented: “It’s unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year. 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.”
Regional Variations
More affordable regions such as the North East of England and Scotland are seeing prices hold up relatively well, Rightmove reported. In these areas, demand remains steadier compared to other parts of the country.
Advice for Sellers
Babcock added: “In this kind of market, sellers need to work harder to attract attention. Setting a competitive asking price from the outset is key, as buyers are taking more time to compare options and are quick to move on if a home doesn’t stand out on value.”
Matt Smith, a mortgage expert at Rightmove, noted: “It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets.”
Industry Reactions
Marc von Grundherr, director of Benham and Reeves in London, observed: “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.”
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. Overall, realistically-priced homes are selling well, with many recent listings already finding buyers.”
