The UK housing market has taken a significant hit this June, with new data from Rightmove revealing its largest price drop in 12 years. The average asking price for newly listed homes fell by 0.6%, or £2,113, to £376,191 – a far cry from the typical modest growth seen in previous Junes.
This downward adjustment is largely attributed to an oversupply of properties available for sale, which has created intense competition among sellers. Rightmove noted that over a third of newly listed homes are currently unsold, highlighting the importance of realistic pricing to attract interest from prospective buyers.
The slowdown in the housing market has been most pronounced across southern England and Wales, where asking prices have generally declined. In contrast, more affordable regions such as the North East and Scotland have shown greater resilience, with their markets proving less susceptible to significant price adjustments.
Despite the softer pricing, overall sales activity in the UK housing market remains relatively stable. While buyer demand in May was 10% lower than the previous year, it largely aligns with activity levels observed throughout 2026. The number of sales agreed was down by 6% year-on-year, though transactions remain comparable with 2024 levels and are ahead of those recorded in 2023.
New listings were 5% lower than a year ago, which could indicate an earlier-than-usual start to the traditional summer slowdown. However, the overall stock of homes available for sale remains elevated – 6% higher than in 2024 and 12% above 2023 levels. This continued high level of supply is providing buyers with more options.
Colleen Babcock, head of partner marketing at Rightmove, commented on the market dynamics: 'The summer market has arrived a little early this year, but overall activity remains within a typical historical range.' She noted that buyer behaviour has evolved due to increased choice and higher borrowing costs, leading buyers to deliberate more extensively before making decisions. Babcock also stressed that the market remains price-sensitive, with buyers actively seeking properties at the right price.
Rightmove's mortgage tracker revealed a slight improvement in mortgage affordability, with the average two-year fixed rate dropping from 5.18% to 5.07% over the past month – potentially reducing average monthly mortgage repayments by around £30.