Average asking prices for newly listed homes fell by £2,113 in June, marking the largest decline for the month in 14 years, according to data from Rightmove. The property portal recorded a 0.6% monthly decrease, bringing the average asking price to £376,191.
June typically sees modest price growth, making this year’s fall the steepest for the month since 2012. Rightmove attributed the decline to high housing supply, increased price sensitivity among buyers, and an earlier-than-usual summer slowdown. May’s heatwave and the ongoing football World Cup were cited as potential factors affecting market activity.
Market rebalancing rather than confidence loss
Nathan Emerson, CEO of Propertymark, said the figures suggest “the market is continuing to find a more sustainable balance, rather than experiencing a loss of confidence.” He noted that buyers remain active but are taking longer to make decisions, with realistically priced homes continuing to attract interest.
Emerson added that national trends mask significant regional differences, with local affordability, supply levels and demand shaping market performance. In areas where stock remains constrained, well-presented and competitively priced properties are still selling well.
Jeremy Leaf, a north London estate agent, said sellers seeking genuine buyers “have been obliged to accept a larger dose of realism” on asking prices. He noted that available stock, particularly flats, combined with concerns about mortgage rates, are making first-time buyers nervous about financial commitments.
Regional and sector variations
Marc von Grundherr, Director of Benham and Reeves in London, said buyers “aren’t moving at the pace we’ve seen in previous years” due to current market conditions and oversupply affording them more time and choice. He suggested the larger than usual dip in asking prices indicates sellers are “finally accepting this reality and pricing to sell.”
Tom Bill, head of UK residential research at Knight Frank, said the Middle East conflict has “sapped seasonal momentum from the housing market.” He expects modest UK house price growth of 1.5% this year as higher mortgage rates affect buyers and political uncertainty increases.
Henry Crane, partner at James Laurence Estate Agents, reported a clear split in the Midlands market. Leasehold properties, particularly those with service charge increases or lease issues, are seeing softer demand, while the freehold market is moving at a quicker pace.
Matthew Harvey, Partner at Tayler & Fletcher, said the Cotswolds market remains resilient, with strong demand from early retirees downsizing and families seeking schooling options across the £300,000 to £400,000 and £500,000 to £1 million segments. He noted that stock levels are higher year-on-year, but sales levels are also ahead.
Polly Ogden Duffy, Managing Director at John D Wood & Co. London, described the spring market as “split in two,” with well-priced family homes in sought-after school catchments attracting strong interest, while the flat market favours buyers due to high supply.
Market outlook
The data suggests the UK housing market is adjusting to a more balanced state, with pricing becoming increasingly important as buyers exercise greater caution. The combination of higher supply levels and evolving affordability pressures continues to shape transaction patterns across different regions and property types.
