UK house prices have taken an unexpected dip this June, with average asking prices falling by 0.3% compared to May. This contrasts with the usual trend for the time of year, where prices typically see a slight increase.
According to data from Rightmove, the average asking price for a home now stands at £378,240. This follows a 0.6% increase recorded between April and May, highlighting a sudden shift in seller behaviour.
Over the past decade, prices in June have typically risen by an average of 0.4%, making this year’s decline particularly notable. The figures suggest that sellers are adjusting their price expectations to stay competitive.
Rightmove attributes this “unusual dip” to the heightened level of competition among sellers. Many homeowners are reportedly lowering their asking prices in order to attract buyers in a market flooded with listings.
The largest drops in asking prices were seen in southern regions of England. The South West experienced the sharpest fall at 1.6%, followed by the South East at 1%, and London at 0.9%.
Despite these regional decreases, the national picture still shows some positive signs. Overall, asking prices in the UK remain 0.8% higher than they were in June of the previous year.
Buyer demand has also grown modestly, with a 3% increase in activity reported. This is accompanied by an 11% rise in the number of properties being listed for sale.
June also saw a strong level of sales activity. According to Rightmove, the number of agreed sales reached its highest point since 2022, indicating that the market remains resilient despite price fluctuations.
These early insights from Rightmove offer a preliminary snapshot of the UK housing market in June, ahead of more detailed reports from official sources expected in the coming weeks.
Market analysts will be closely watching how these trends unfold, particularly as economic conditions continue to shift. Price adjustments may well become a recurring feature as buyers grow more selective.
The wider economic backdrop also plays a key role. With interest rates currently held at 4.25% by the Bank of England, borrowing costs have eased following four rate cuts since summer 2024.
Lower mortgage rates have made borrowing slightly more affordable, which could support continued buyer interest in the months ahead. However, with supply growing, sellers may continue to feel pressure to price competitively.
According to Rightmove, realistic pricing is becoming more important than ever as the number of new sellers continues to outpace new buyers. Their recent analysis, based on newly listed homes from over 13,000 estate agency branches in the four weeks leading up to 7 June, highlights this growing imbalance.
Regions such as the South West, South East, and London not only saw the most significant drops in asking prices but also recorded the biggest year-on-year increases in the number of homes available for sale. This rise in supply has placed further downward pressure on prices in these areas.
Despite the recent price falls, property values in these parts of the country remain relatively high. On average, homes are priced at £319,000 in the South West, £492,500 in the South East, and £695,400 in London.
The changes introduced to the stamp duty system in April have had a noticeable impact. These three regions were more affected due to the fact that stamp duty still does not apply to homes valued below £125,000—making higher-value properties more vulnerable to the tax changes.
Additionally, increased stamp duty charges on second homes and higher council tax rates in popular coastal locations like Cornwall and Devon have contributed to more properties being listed for sale.
Estate agents in prime areas are witnessing a shift in seller behaviour. Josephine Ashby, managing partner at John Bray Estates in Rock, Cornwall, noted that sellers are becoming more serious and competitive. Many are reducing their asking prices or listing their properties at more appealing levels.
This has resulted in buyers having more options, especially in coastal hotspots. The availability of competitively priced properties has created a more favourable environment for prospective buyers.
The recent stamp duty reforms have added an element of unpredictability to the market. Some buyers rushed to complete transactions before the tax changes came into effect, contributing to fluctuations in market activity.
Meanwhile, lenders such as Nationwide and Halifax have reported mixed house price data for May. However, both agree that prices are still higher than this time last year, continuing a trend that began in 2024.
This upward trajectory in annual house prices has been supported by gradually falling mortgage rates. Following peaks in 2023, borrowing costs have been easing, helping to maintain demand despite broader market challenges.
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