According to Rightmove, such a decline in asking prices was “unusual” for this time of year, as the data from the last decade showed there was typically a 0.4% rise in asking prices in June.
Despite this monthly fall, average asking prices were 0.8% higher than this time last year.
The firm said this indicated that sellers were attempting to draw in buyers amid a competitive market.
Rightmove buyer activity was still strong, with May coming out as the busiest month for agreed sales since March 2022, with a 6% uplift on the same period in 2024.
The firm found that buyer demand was also 3% ahead of this time last year, while the number of homes coming to market was 11% higher.
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On average, estate agents had 63 properties on their books in May, up from 60 in April.
Rightmove said the amount of choice buyers had made the market price-sensitive, meaning realistic pricing was important.
Although affordability has improved, a slight rise in average mortgage rates has also meant that the right pricing is key, with Rightmove’s weekly mortgage tracker showing that the current average five-year fixed rate is 4.61%, just slightly lower than last year’s 5.04%.
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. Prices have fallen this month after the new records set in April and May. Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message. Such realistic pricing will remain key in the coming months.
“Underneath the headline figures, we can see regional variations in price changes this month, which appear closely linked to buyer affordability and supply levels.”
Steeper falls in high-priced regions
The data showed that regions with higher property prices, such as London, the South West and the South East, saw the largest price drops in June.
Rightmove said buyers in these regions were “disproportionately affected by April’s stamp duty changes”, so some buyers were probably adjusting pricing to account for this.
These regions also saw the largest increase in available homes for sale compared to last year, also putting downward pressure on pricing.
Further, higher council tax on second homes likely contributed to a rise in properties up for sale in places like Cornwall and Devon, Rightmove said.
In the North West, Wales and Yorkshire and the Humber, where house prices are more affordable, there were larger increases recorded.
Babcock said: “It’s an encouraging market for those looking to buy, with a very good choice of homes for sale, which also means they have good negotiating power. Some buyers with a home to sell in the current high-supply market may achieve a lower price on their own sale, but could look to offset that by negotiating a comparable discount on their purchase.
“The fact that sales are being agreed not only at a good level, but at the strongest level since March 2022, is a really positive sign that many are getting their sales tactics right. Rightmove’s analysis shows that homes [that] are 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.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Sellers aim to entice buyers with ‘unusual’ fall in asking prices – Rightmove
