"It appears that we’re now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers’ pricing"
- Colleen Babcock - Rightmove
The average asking price for a UK home has dropped by 0.3% in June, falling by £1,277 to £378,240, according to the latest market data released by Rightmove. This marks an unusual decline for the month, which typically sees prices rise by an average of 0.4%, based on the past ten years.
The decline follows stronger-than-expected growth in April and May and is partly seen as a delayed response to increased stamp duty costs introduced in England in April. A sustained, decade-high level of homes for sale is also contributing to downward pressure on prices, as buyers benefit from more choice and sellers adjust expectations to remain competitive.
May recorded the highest level of sales agreed since March 2022, suggesting that more realistic pricing is helping to drive market activity. However, performance varies across different segments, with affordability and supply shaping outcomes in key regions.
“It appears that we’re now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers’ pricing,” said Colleen Babcock, property expert at Rightmove. “Prices have fallen this month after the new records set in April and May.
"Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message. Such realistic pricing will remain key in the coming months. Underneath the headline figures, we can see regional variations in price changes this month, which appear closely linked to buyer affordability and supply levels.”
The South West, South East and London (the most expensive regions) recorded the largest monthly price drops. Buyers in these areas have been more directly affected by the stamp duty changes, particularly investors and second-home purchasers, while higher council tax charges in coastal areas such as Cornwall and Devon may also be prompting sales. These regions have also seen the greatest annual increases in housing supply, reinforcing downward pricing trends.
By contrast, prices rose in more affordable regions, including the North West, Wales, Yorkshire and the Humber. These areas are either less impacted or, in the case of Wales, unaffected by the stamp duty changes. The volume of available properties in these regions has increased less dramatically compared to the South, helping to support values.
Across the UK, the average asking price remains 0.8% above its level this time last year.
Buyer demand has remained steady, with affordability gradually improving. Wage growth continues to outpace house price inflation, and some lenders have begun to loosen affordability criteria. In May, the number of sales agreed was 6% higher than the same month last year. The number of new buyers entering the market also rose by 3% annually. However, supply continues to outpace demand, with 11% more homes listed for sale than in May 2023.
With mortgage rates edging up in recent weeks, the current average five-year fixed rate stands at 4.61%, down only slightly from 5.04% a year ago, pricing strategy and presentation remain key to securing a buyer.
“It’s an encouraging market for those looking to buy, with a very good choice of homes for sale, which also means they have good negotiating power,” explained Babcock. “Some buyers with a home to sell in the current high-supply market may achieve a lower price on their own sale but could look to offset that by negotiating a comparable discount on their purchase. The fact that sales are being agreed not only at a good level but at the strongest level since March 2022 is a really positive sign that many are getting their sales tactics right.
She added, "Rightmove’s analysis shows that homes which are marketed as effectively as possible and priced right at the start of marketing will get the all-important early interest that vastly increases the likelihood of finding a buyer.”
Rightmove’s data highlights that listings which generate an enquiry on the first day are 22% more likely to sell than those that take over two weeks to receive interest. Well-written descriptions, quality photography and competitive pricing are proving critical in securing early attention.
Tom Bill, head of UK residential research at Knight Frank commented, “The stamp duty cliff edge in April cooled demand and sellers have realised just how much of a buyers’ market it is. The number of new UK listings in May was 25% higher than the five-year average while the number of new buyers was a fifth lower, Knight Frank data shows.
"Supply has risen for reasons that include delayed activity due to last year’s election and Budget, a degree of financial distress as mortgage rates normalise, and a growing number of landlords trying to sell due to legislative changes. Whatever the cause, asking prices need to reflect this imbalance, particularly for anyone wanting to move before speculation ahead of the autumn Budget potentially drags on activity after the summer.”
Toby Leek, President of NAEA Propertymark, comments, "This modest dip is welcome but is more than likely due as a result of the backlash in the increase in Stamp Duty across England and Northern Ireland. A considerable number of first-time buyers will see this dip in house prices balanced out by the tax increase.
"Moving forward, many homebuyers will need additional support in order to enter onto the property ladder considering first-time buyers need around a £60,000 deposit to buy a home."
Nick Jones, mortgage sales and marketing director at Access FS said, “First-time-buyers who want to take advantage of opportunities out there could do worse than investigate some of the low-deposit mortgage products out there at the moment.
"High LTV mortgages, including 97%, 99% and even 100% LTV options, have seen a resurgence recently. Lenders such as April Mortgages, Vida Homeloans, Gable Mortgages, Halifax and Accord Mortgages are offering innovative solutions that balance risk and opportunity, products designed for tenants who demonstrate financial responsibility but who struggle to save a substantial deposit amid rising rents and living costs.
"Gable Mortgages, for instance, has two 0% deposit, five-year fixed products: a standard option at 6.29% and a new-build version at 5.99%, with loans up to £1 million. These high LTV mortgages could offer hope to responsible, mortgage-ready FTBs – hindered only by the deposit barrier – enabling them to capitalise on a temporary dip in June prices as new sellers adjust their expectations.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman says, “The amount of unsold stock is rising, and transaction numbers are falling.
“However, the overwhelming majority of agreed sales are holding, although some prices are softening. We are telling sellers who are also buyers but receiving little or no interest in their properties to concentrate on the difference between the two and reduce closer to their bottom line while still leaving room for negotiation.
“New sellers, particularly of flats, need to recognise quickly the buyers’ market conditions and price to stand out from the crowd.”
