The average asking price for a home in Britain fell by £2,113 last month – the steepest drop recorded for June in 14 years, according to Rightmove. The 0.6% decline brought the typical price to £376,191, a move the property portal described as “unusual” for a month that normally sees modest gains.
Rightmove pointed to a combination of factors: higher mortgage rates squeezing household budgets, an unseasonably warm May that may have brought the summer slowdown forward, and the World Cup distracting potential buyers. The number of homes on the market has also risen, giving buyers more choice and less incentive to rush.
“House asking prices fell 0.6% in June, the biggest drop for that month in 14 years, as higher mortgage rates hit buyers.”
“It’s unusual to see a price fall of this size in June,” said Colleen Babcock, property expert at Rightmove. “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.”
She added that sellers need to work harder: “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.”
Babcock noted that overall activity remains within a typical historic range, but buyer behaviour has shifted. “With more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions.”
Matt Smith, a mortgage expert at Rightmove, offered a sliver of optimism: “It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets.”
More affordable regions such as the North East of England and Scotland are showing relative price stability compared with a year ago, Rightmove said.
Separate data from property firm Hamptons showed the rental market continuing to cool. The average price of a newly agreed let in Britain rose 1.1% annually in May, slowing from 1.2% in April. Tenants moving into a property paid an average of £1,382 per month. In the South East, rents reached £1,500, up 2.0% on the year.
The question hanging over the market is whether the combination of easing mortgage rates and a slight softening in rents will be enough to lure hesitant buyers back – or whether the summer slowdown has arrived early and is here to stay.