House sellers have made the biggest June price reduction in 14 years as higher stock levels and cautious buyer sentiment continue to reshape the housing market, according to the latest Rightmove House Price Index.
The average asking price of a newly listed property fell by 0.6% (£2,113) this month to £376,191. The decline is the largest June drop recorded since 2012 and leaves asking prices 0.5% lower than a year ago.
While the headline figures point to a softer market, there are signs that underlying transaction activity remains relatively resilient. Sales agreed are down 6% year-on-year but are broadly in line with 2024 levels and around 5% ahead of 2023, suggesting motivated buyers are still transacting where pricing and affordability align.
The figures reinforce the importance of realistic vendor expectations and the growing role advisers play in helping clients navigate a market where affordability remains stretched but borrowing conditions are gradually improving.
LOW BUYER DEMAND
Buyer demand during May was 10% lower than a year ago, although Rightmove said activity was temporarily impacted by the unusually warm weather and half-term holiday period.
At the same time, the volume of homes available for sale remains elevated, with listings 6% higher than in 2024 and 12% above 2023 levels.
Colleen Babcock (main picture, inset), property expert at Rightmove, said: “It’s unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year.
“What’s different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market.
“In this kind of market, sellers need to work harder to attract attention. Setting a competitive asking price from the outset is key, as buyers are taking more time to compare options and are quick to move on if a home doesn’t stand out on value.
“When sellers are over-optimistic on price and find they need to reduce later to sell, it can be harder to regain momentum, which underlines just how important it is to get the pricing right from day one.”
IMPROVED AFFORDABILITY
There was better news on affordability. Rightmove’s daily mortgage tracker shows the average 2-year fixed rate fell to 5.07% during the month, down from 5.18% previously, reducing monthly mortgage costs by around £30 for a typical borrower.
Matt Smith, Rightmove’s mortgage expert, 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.
“There is still some underlying volatility in the economic and global market, which means rates could move slightly in either direction from here.
“However, the key takeaway for buyers is that we’re currently in a period of greater stability than we’ve seen previously, and that stability can help support confidence, particularly for those who are close to affordability limits and weighing up their next step.”
The data suggests a market where transactions remain possible but increasingly depend on accurate pricing, realistic expectations and affordability support — areas where brokers continue to play a central role.
LACK OF CONFIDENCE
Tomer Aboody, director of specialist lender MT Finance, said: “There is a lack of confidence in the housing market as buyers adopt a more cautious approach and are not prepared to pay over-the-odds, particularly when they have so much choice.
“Affordability remains the main driving force, as buyers, especially those purchasing for the first time, find it easier to get on the ladder beyond London and the south east, particularly in the north of England, where prices are lower.
“Although mortgage rates are higher than this time last year, the sales market hasn’t been impacted that much as needs-based buyers still have to move and are taking advantage of higher leveraged deals in order to buy.
“However, the market could do with some encouragement from the government, in the form of lowering stamp duty, which would boost transactions and benefit the wider economy.”
