Home sellers have reduced asking prices this month, signalling a shift in strategy as rising stock levels and affordability pressures heighten competition across the UK housing market.
The average asking price of property coming to market in June fell by 0.3% (£1,277) to £378,240, according to new data from Rightmove – an unusual drop for the month, which has seen average gains of 0.4% over the past decade.
Analysts attribute the decline to an increasingly price-sensitive market and a delayed reaction to higher stamp duty charges introduced in April.
And although the headline figures point to price softening, industry professionals argue the market remains fundamentally resilient – with activity levels strong and a growing cohort of motivated buyers still willing to transact, provided the pricing is right.
ROBUST ACTIVITY
Despite the fall in prices, market activity remains robust. May recorded the highest number of sales agreed since March 2022, with buyer demand up 3% on the same time last year.
However, the number of new listings is rising even faster – up 11% year-on-year – giving buyers greater choice and prompting many sellers to adopt more realistic pricing strategies.
Colleen Babcock, property expert at Rightmove, said: “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. Such realistic pricing will remain key in the coming months.”
REGIONAL LINES
Prices in southern England and London – where properties are higher in value and stamp duty more punitive – have seen the largest month-on-month falls.
These areas are also experiencing significant increases in homes for sale, with more investment and second-home properties coming onto the market.
By contrast, prices are still rising in more affordable areas such as the North West, Wales, and Yorkshire & The Humber.
These regions, less affected or entirely exempt from the recent stamp duty changes, are seeing more modest growth in supply and continued buyer demand.
INCREASED CHOICE
Across the board, buyers are benefiting from increased choice and stronger negotiating power.
While average mortgage rates remain broadly stable – with a typical 5-year fix now at 4.61%, compared with 5.04% a year ago – the heightened competition means only well-presented, correctly priced homes are selling swiftly.
Rightmove data shows that listings which receive an enquiry on their first day are 22% more likely to result in a sale than those that wait two weeks or more for initial interest.
EARLY INTEREST
Babcock added: “Homes 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.”
In coastal hotspots such as Cornwall and Devon, where second-home taxes have risen sharply, sellers are responding to the shifting market.
Josephine Ashby, Managing Partner of John Bray Estates in Rock, Cornwall, said: “The combination of a rare abundance of high-quality properties at reduced guide prices in the prime coastal areas is resulting in the tide finally turning in a positive way.
“The established and prime locations are still winning, especially at the top end of the market.”
LOW DEPOSIT OPTIONS
Nick Jones, mortgage sales and marketing director of 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.”
ZERO DEPOSIT
And he added: “Gable Mortgages, for instance, has two 0% deposit, 5-year fixed products: a standard option at 6.29% and a new-build version at 5.99%, with loans up to £1 million.
“They offer hope to responsible, mortgage-ready first-time buyers hindered only by the deposit barrier, enabling them to capitalise on a temporary dip in June prices as new sellers adjust their expectations.”
MOTIVATED SELLERS
Tomer Aboody, director of specialist lender MT Finance, said: “Sellers are more motivated to sell as buyers take advantage of lower mortgage rates.
“With the economy potentially taking a negative turn, sellers are realising that if they are serious about selling, they need to be open to offers or price correctly in the first instance.
“Increases to stamp duty have had a negative impact on the higher end of the market which has seen a slowdown. Buyers are eagerly waiting to see whether further rate cuts will come, which will lessen the impact of potentially higher stamp duty costs.”
