The typical asking price for a property dropped by 0.6%, or £2,113, in June, marking the largest decline recorded for this particular month in 14 years, according to a leading property website.
The month-on-month decrease brought the average asking price across Britain down to £376,191, Rightmove revealed. June ordinarily sees modest price rises, Rightmove noted.
The property portal added that the warmer weather in May may have triggered the customary summer slowdown earlier than expected this year, while the World Cup could also prove to be a distraction for some prospective home movers.
Rightmove further noted that more affordable regions of Britain, such as the North East of England and Scotland, are witnessing prices holding up comparatively well against the same period last year.
Colleen Babcock, property expert at Rightmove, said: "It's unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year. What's different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market. In this kind of market, sellers need to work harder to attract attention. Setting a competitive asking price from the outset is key, as buyers are taking more time to compare options and are quick to move on if a home doesn't stand out on value."
Rightmove reported that elevated mortgage rates continue to dampen activity as numerous household budgets face pressure, while the broader selection of properties available is prompting buyers to adopt a more measured approach unless a home truly catches their eye.
Ms Babcock commented: "While the summer market has come a bit early this year, overall activity is still within a typical historic range. 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."
Matt Smith, a mortgage expert at Rightmove, remarked: "It's encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers' budgets."
Marc von Grundherr, director of Benham and Reeves, London, observed: "Buyers aren't moving at the pace we've seen in previous years, largely because current market conditions and an oversupply of stock are affording them the luxury of both time and choice."
Henry Crane, a partner at James Laurence Estate Agents, Birmingham, noted: "Overall, while demand remains, it is highly price-sensitive and selective, with the best-positioned homes continuing to perform strongly."
Matthew Harvey, a partner at Tayler & Fletcher, Cotswolds, stated: "Demand in the higher middle market remains steady, led by lifestyle and schooling needs. At the top end, price adjustments are largely a correction of earlier overpricing following the post-COVID surge. Overall, realistically-priced homes are selling well, with many recent listings already finding buyers."
The report came alongside a separate index from property firm Hamptons, which revealed that the average price of a newly agreed let in Britain climbed 1.1% over the year to May, easing back from a 1.2% annual rise recorded in April.
Hamptons confirmed that tenants moving into a property across Britain were paying an average rent of £1,382 per month in May. Looking at regional figures, the average new let rent across the South East of England hit £1,500 per month in May, marking a 2.0% annual increase. Hamptons noted this is the first occasion it has recorded any region outside London reaching the £1,500-per-month threshold.
Aneisha Beveridge, head of research at Hamptons, said: "While rental growth on newly agreed lets remains cool by recent standards, landlords appear to be taking a more cautious approach when selecting new tenants. Many are showing a willingness to wait for the right tenant rather than accept the first offer, which has reduced the number of homes let and helped to keep a lid on rental growth for new tenants."
Hamptons' monthly lettings index, which has been in operation since 2011, draws on data from the Connells Group to monitor shifts in rental costs. The index is calculated using achieved rather than advertised rents.
Below are the average monthly rents for newly let homes in May, according to Hamptons, alongside the annual change:
- London, £2,294, 0.6%.
- East of England, £1,225, 0.3%.
- South East, £1,500, 2.0%.
- South West, £1,265, 0.9%.
- East Midlands, £987, minus 0.9%.
- West Midlands, £1,107, 2.6%.
- North East, £856, 3.8%.
- North West, £1,042, 1.8%.
- Yorkshire and the Humber, £927, 1.4%.
- Wales, £887, 1.1%.
- Scotland, £1,029, 0.6%.
