The housing market has been dealt a shock with an unexpected 0.6% drop in average property prices this June, according to Rightmove's latest data. The dip brings the average UK house price down to £376,191 - its lowest point for any June in 14 years.
Rightmove attributes the slowdown to a combination of factors, including an early heatwave that kick-started the summer slowdown earlier than usual and the ongoing World Cup's distraction from potential home-movers. Colleen Babcock, Rightmove's property expert, notes that this significant price fall in June is unusual, as modest growth is typically expected at this time of year.
House prices are now 0.5% lower than they were a year ago, while buyer demand has seen a notable decrease, falling by 10% in May. The number of homes entering the market is five percent lower year-on-year but remains six percent higher than in 2024. The rate of agreed sales is down six percent annually, aligning with levels seen in 2024 and 2023.
Historically, the summer months see reduced housing activity as Britons focus on holidays, good weather, and major sporting events. This seasonal pattern typically means properties need to be more attractively priced to capture buyer interest. Wider economic uncertainty and elevated mortgage rates continue to put pressure on consumer confidence and purchasing power.
Tom Bill at Knight Frank comments that ongoing geopolitical events have 'sapped' seasonal momentum from the housing market, primarily due to higher mortgage rates impacting buyers. Propertymark agrees that improved mortgage rate conditions would significantly bolster homebuying confidence, despite acknowledging a solid appetite to move among buyers.