Rightmove Sees 0.6% June Drop in Uk Property Market Decline
Uk property market decline accelerated in June as average UK home prices fell 0.6%, the biggest monthly drop in 14 years. Rightmove said the average asking price dropped £2,113 to £376,191, leaving sellers facing more resistance just as homes for sale stayed at historically high levels for the time of year.
Rightmove's June Price Cut
0.6% was the monthly fall that took prices 0.5% below a year earlier, a sharper move than the market had been posting in recent months. Rightmove linked the drop to sellers adjusting asking prices in a market where buyers have more room to negotiate, and where the supply of homes remains elevated for this point in the year.
£376,191 was the new average asking price after June's reduction. Matt Smith, head of mortgages at Rightmove, said: “It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets.
“While rates remain higher than the lows of recent years, they have been relatively stable over a sustained period, which is helping to provide more certainty for those planning a move.”
Matt Smith On Mortgage Rates
5% fewer newly listed homes were coming to market than at the same time last year, but the flow was still 6% above 2024 and 12% higher than 2023. That leaves buyers with more choice than they had a year ago, even as the pace of new listings has eased versus last summer. Rightmove also said buyer demand bounced back after a lull created by the heatwave during the half-term holiday.
8% was the drop in enquiries in one week at the end of May, when temperatures soared, and that slowdown fed into June's softer pricing. Jeremy Leaf said sellers chasing real demand have had to become more realistic on asking prices, while Marc von Grundherr said current conditions and oversupply are giving buyers more time and choice.
Jeremy Leaf On Asking Prices
Jeremy Leaf, a north London estate agent and former RICS residential chairman, said: “In our offices, sellers wanting to attract genuine buyers have been obliged to accept a larger dose of realism when it comes to asking prices, which are increasingly recognised as an aspirational starting point only.
“The amount of available stock – particularly flats – as well as concerns about the cost of living and mortgage rates, are making first-time buyers nervous about making financial commitments so the market is becoming even more price sensitive.”
“Most sales are holding up but that lingering uncertainty about economic prospects is prompting lengthier transactions, which in turn increases the risk of further re-negotiation or even collapse.”
For buyers, the June figures point to more leverage when an asking price looks ambitious. Henry Crane said the market is splitting, with leasehold properties seeing softer demand and freehold homes moving more quickly, which means condition, ownership structure and pricing now matter more at the offer stage than they did when demand was tighter.
Henry Crane, partner at James Laurence Estate Agents, said: “From our perspective across the Midlands, we’re seeing a clear split in the market. Leasehold properties, particularly those with service charge increases or lease issues, are seeing softer demand and less urgency from buyers.
“In contrast, the freehold market is moving at a quicker pace. Well-presented, sensibly priced freehold homes are attracting strong interest and continue to sell quickly and competitively, effectively operating within their own micro-climate.”
