LONDON: Asking prices for homes put up for sale in Britain have fallen by the most in 14 years for the time of year, according to data published yesterday that adds to signs of softer pricing after the end of a tax break on house sales.
Prices dropped by 0.3% compared with a month earlier in Rightmove’s June period, which ran from May 11 to June 7.
This was the biggest drop since June 2011 and compared with a typical 0.4% rise for the period, the property website 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,” Colleen Babcock, property expert at Rightmove, said.
Asking prices were 0.8% higher than a year earlier, the smallest annual rise since August 2024, leaving the average asking price at £378,240 (US$514,255).
However more competitive pricing was helping sales activity, and the number of agreed sales had risen to the highest in more than three years, Rightmove said.
Other measures of Britain’s property sector have shown a slowdown, and Bank of England (BoE) data showed mortgage approvals in April dropped to their lowest in more than a year.
The BoE is expected to keep interest rates on hold on June 19, and financial markets are pricing in around two more quarter-point rate cuts by the end of this year.
Official figures also showed the economy slowed sharply in April due to a one-off hit from the end of a tax break on property sales, and shockwaves from US President Donald Trump’s announcement of wide-ranging tariffs.
Rightmove said homes in southern England, which are typically more expensive and were more affected by the increase in property taxes, saw bigger price drops. — Reuters