The average asking price for a property across the UK experienced a significant dip in June, falling by 0.6%, or £2,113. This marks the most substantial decline recorded for the month of June in 14 years, bringing the average asking price to £376,191. According to the latest house price index from Rightmove, this figure is now around 0.5% lower than at the same point last year.
This unusual downturn for June, a month that typically sees modest price growth, is attributed to a combination of factors. Rightmove highlights historically high levels of available housing stock coupled with subdued buyer demand, which was down 10% year-on-year in May. Higher mortgage rates are believed to be a key driver behind this reduced demand, as borrowing costs remain elevated following wider economic uncertainties.
Colleen Babcock, a property expert at Rightmove, noted the confluence of economic uncertainty, the timing of the May bank holiday, and an unseasonable heatwave as contributing to bringing forward the traditionally slower summer market. Sellers are increasingly cutting asking prices in an effort to attract buyers in a more competitive environment, reflecting a market that has shifted in favour of those looking to purchase.
Despite the fall in asking prices, sales activity has shown some resilience. Rightmove's data indicates that sales are down 6% year-on-year, but overall figures for 2026 are broadly in line with recent years, matching 2024 and exceeding 2023 by 5%. This suggests that while buyers are taking more time and deliberating over their decisions due to increased choice and higher borrowing costs, transactions are still occurring.
Regionally, the picture is varied. While most areas of the UK saw asking prices fall, Scotland and London bucked the trend. Scotland recorded an increase of 0.8% in June, pushing its average asking price to £207,011, and boasts the fastest sales in the UK. London also saw a modest rise of 0.3%, with average asking prices reaching £687,080, though prices in the capital remain 1.2% lower than a year ago. In contrast, Wales experienced the poorest performance, with average asking prices falling by 1.6% to £271,459.
The current market conditions imply a more cautious approach from buyers, who are now more sensitive to pricing. With mortgage rates expected to remain high, the emphasis on finding the 'right property at the right price' is likely to continue shaping buyer behaviour over the coming months.
Source: Rightmove