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Asking prices for UK homes fell in June, bucking the trend for rises at this time of year, according to data that showed the biggest declines in London and the south of England where more properties were put up for sale.
Average new seller asking prices dropped 0.3 per cent to £378,240 between May and June, Rightmove said on Monday, after a 0.6 per cent increase between April and May.
Prices have risen by an average of 0.4 per cent in June for the past 10 years, according to the property portal.
It said the “unusual dip” came as “new sellers lower their price expectations amid decade-high competition to secure buyers”.
The biggest drops in asking prices came in the south-west and south-east of England as well as London, which registered falls of 1.6 per cent, 1 per cent and 0.9 per cent respectively.
Average UK asking prices were still 0.8 per cent higher than in June last year, with demand rising by 3 per cent and the number of homes coming to market up 11 per cent.
Sales agreed in June were the highest since 2022, according to the Rightmove data, which gives a first indication of the state of the property market in June ahead of official and other unofficial figures in coming weeks.
The Bank of England is this week expected to hold interest rates at 4.25 per cent, following four rate cuts since the summer of 2024 that have helped mortgage rates come down.
“With more new sellers still coming into the market than new buyers, pricing realistically remains key,” said Rightmove, which tracked newly listed properties marketed via more than 13,000 estate agency branches in the four weeks to June 7.
In addition to seeing the biggest drops in asking prices, the south-west, south-east and London registered the biggest increases in available homes for sale compared with last year.
Rising supply levels put downward pressure on prices in the three parts of the country, although they remain relatively expensive, with the average property costing £319,000, £492,500 and £695,400 respectively.
The three regions were also disproportionately affected by changes to the stamp duty regime in April, since the levy still does not apply to properties valued up to £125,000.
Increases in stamp duty on second homes and higher council tax in coastal hotspots such as Cornwall and Devon had also contributed to the increase in properties available for sale, Rightmove said.
Josephine Ashby, managing partner of estate agent John Bray Estates in Rock, Cornwall, said “serious sellers are more focused than ever, reducing or listing property at much more attractive asking prices”. As a result, she added, “buyers have more choice than ever” in prime coastal areas.
The stamp duty changes have injected volatility into the property market, with buyers rushing to complete purchases ahead of tax increases.
Lenders Nationwide and Halifax reported differing monthly trends for May, but both showed house prices remain above last year’s levels — a pattern seen since 2024, when mortgage rates began easing from 2023 highs.