Rightmove says worst June for property prices in 14 years

The average price of property coming to market fell by 0.6% this month to £376,191, the biggest June fall in 14 years, according to Rightmove data.

The drop left prices 0.5% lower than a year ago, with the number of homes for sale remaining at historically high levels for this time of year. This is driving price drops as competition to attract buyers remains fierce, particularly in the slow summer months.

The May heatwave meant summer started earlier than usual this year, and buyer demand was down by 10% across the month of May, Rightmove said. The World Cup might also prove a distraction for movers, while ongoing economic challenges and global uncertainty continue.

In terms of regional differences, prices have fallen across all southern England regions and Wales, while more affordable areas such as the North East and Scotland are holding up better compared to this time last year.

Despite headwinds, sales activity remained steady overall with sales agreed down 6% year-on-year but broadly in line with previous years- virtually level with 2024 and around 5% above 2023.

Mortgage affordability has improved slightly, with Rightmove’s daily mortgage tracker showing that the average two-year fixed rate has dropped to 5.07% from 5.18% last month.

“While the summer market has come a bit early this year, overall activity is still within a typical historic range,” said Colleen Babcock, property expert at Rightmove. “What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions.”