Average asking price drops 0.3% as sellers respond to increased supply and stamp duty changes
The average price of newly listed homes has fallen by 0.3% this month to £378,240, according to the latest data from Rightmove.
The £1,277 drop marks a rare June decline and contrasts with the 0.4% average rise typically recorded at this time of year.
Rightmove attributes the dip to a combination of recent tax changes and greater choice for buyers, which is pushing sellers to adopt more realistic pricing. The market had seen stronger than expected price growth in April and May.
The stamp duty increases introduced in England in April appear to be having a delayed influence on pricing, particularly in southern regions, where higher values mean the tax burden is more keenly felt. A higher number of properties for sale is also adding downward pressure on asking prices.
“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,” said Colleen Babcock (pictured centre), property expert at Rightmove. 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.”
According to the latest Rightmove House Price Index, the South West, South East and London recorded the largest price drops in June, as sellers respond to the impact of higher stamp duty charges and rising supply. These regions have also seen a notable increase in listings compared to a year ago, with additional taxes on second homes and investment properties possibly driving more stock to market.
Conversely, the most significant price increases this month were found in the North West, Wales and Yorkshire & the Humber — regions less exposed to stamp duty changes. The number of homes for sale in these areas has also risen less sharply than in southern England. Overall, asking prices remain 0.8% higher than in June last year.
Despite the growing volume of homes on the market, sales activity remains firm. Rightmove reports that the number of agreed sales in May was the highest since March 2022 and 6% ahead of the same month last year. Buyer demand also rose 3% year-on-year in May, although new seller listings outpaced this, up 11% on the year.
Affordability appears to be improving, with average wages rising faster than house prices and some lenders easing borrowing criteria. However, Rightmove notes that with competition among sellers increasing, pricing accurately is essential to attracting buyers quickly.
Rightmove’s mortgage tracker puts the current average five-year fixed rate at 4.61%, down slightly from 5.04% this time last year. Properties that generate interest on the first day of listing are 22% more likely to sell, highlighting the importance of competitive pricing and strong presentation.
“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,” Babcock added. “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 which 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.”
Nick Jones (pictured left), mortgage sales and marketing director at Access FS, said the current environment could present an opening for first-time buyers. “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,” he said.
“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. Gable Mortgages, for instance, has two 0% deposit, five-year fixed products: a standard option at 6.29% and a new-build version at 5.99%, with loans up to £1 million. These high LTV mortgages could offer hope to responsible, mortgage-ready FTBs – hindered only by the deposit barrier – enabling them to capitalise on a temporary dip in June prices as new sellers adjust their expectations.”
Jeremy Leaf (pictured right), north London estate agent and former RICS residential chairman, also commented on current conditions: “The amount of unsold stock is rising and transaction numbers are falling,” he said. “However, the overwhelming majority of agreed sales are holding, although some prices are softening.
“We are telling sellers who are also buyers, but receiving little or no interest in their properties, to concentrate on the difference between the two and reduce closer to their bottom line while still leaving room for negotiation. New sellers, particularly of flats, need to recognise quickly the buyers’ market conditions and price to stand out from the crowd.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
