UK home sellers have bitten the bullet in June, slashing asking prices by a significant 0.6%, or £2,113, on average, taking the price of newly listed properties down to £376,191. This is the largest June decline recorded by Rightmove in 14 years, bucking the trend of small price increases that have characterised this time of year over the past decade.
The key driver behind this sudden shift is a toxic mix of economic uncertainty, the timing of the May bank holiday, and unusually high stock levels. Rightmove's expert analysis suggests these factors are fast-forwarding the traditionally slower summer market, prompting new sellers to price more competitively from the start in order to attract buyer interest.
The number of homes available for sale remains stubbornly high at this time of year, further intensifying competition among sellers and putting downward pressure on prices. A staggering third of new listings aren't making it to a sale, underlining the perils faced by those who initially overprice their properties. Buyers are taking their time to compare options, dismissing homes that don't offer good value.
Price reductions have been widespread across southern England and Wales, but more affordable northern markets like the North East and Scotland have shown greater resilience, holding firm against last year's price levels. This highlights a varied market landscape across the UK, influenced by local affordability and supply-demand dynamics.
New listings are down 5% compared to last year, but still 6% higher than in 2024 and 12% above 2023 levels. Sales agreed were down 6% on last year, but largely consistent with 2024 and 5% higher than in 2023. Mortgage affordability has improved slightly, with the average two-year fixed rate falling from 5.18% to 5.07%, potentially saving buyers around £30 a month on their mortgage payments.
Experts like Marc von Grundherr of Benham and Reeves advise sellers to adopt a patient and pragmatic approach, pricing realistically in order to achieve successful sales rather than clinging to inflated expectations.