Property asking prices have seen their biggest June drop in 14 years, according to Rightmove.
The typical asking price of a newly-listed home fell by £2,113 or 0.6 per cent between 10 May and 6 June, according to the property portal.
It means the average newly listed home is now £376,191, down from a record high of £379,517 last May.
May and June often see modest price increases, as buyers become distracted by holidays and good weather. However, price have still typically risen by an average of 0.1 per cent during this period over the past 10 years.
This month’s fall represents the biggest decline in 14 years.
Much of the country is currently a buyers’ market due to high levels of stock on the market and few people out house hunting.
Summer bargains: Rightmove has seen a larger than usual June drop in new asking prices as sellers look to entice buyers
The number of homes for sale remains at historically high levels for this time of year, driving price falls as competition to attract a buyer remains fierce among sellers.
There are 6 per cent more homes on the market today compared to the same period in 2024, and 12 per cent more than 2023, Rightmove said.
Meanwhile, buyer enquiries across the month of May were down 10 per cent year-on-year, with higher mortgage rates continuing to limit what people can afford to pay.
Colleen Babcock, a 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.’
‘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.
‘When sellers are over-optimistic on price and find they need to reduce later to sell, it can be harder to regain momentum, which underlines just how important it is to get the pricing right from day one.’
Prices have fallen across all of southern England and Wales, according to Rightmove, while more affordable northern areas such as the North East and Scotland are holding up better compared to this time last year.
In London, average newly listed asking prices in Westminster are down 6.6 per cent year-on-year. In Camden they are down 5.8 per cent and in Wandsworth, prices are 5.3 per cent lower.
Meanwhile, in Redbridge, they are up 2.5 per cent and in Barking and Dagenham, average asking prices are up 2.3 per cent.
Polly Ogden Duffy, managing director at John D Wood & Co in London says the market is split in two.
‘Well-priced family homes, particularly in sought-after school catchments, continue to attract strong interest and can still achieve multiple bids.
‘In contrast, the flat market is firmly in buyers’ favour, with high supply giving purchasers greater choice and negotiating power.
‘Asking prices are adjusting, and homes that aren’t priced correctly risk sitting without interest.
‘For first-time buyers, this represents one of the better windows of opportunity in recent years, with more choice and greater scope to negotiate.’
Henry Crane, partner at James Laurence Estate Agents in Birmingham also says the problem with flats extends beyond the capital.
‘From our perspective across the Midlands, we’re seeing a clear split in the market,’ said Crane.
‘Leasehold properties, particularly those with service charge increases or lease issues, are seeing softer demand and less urgency from buyers.
‘In contrast, the freehold market is moving at a quicker pace. Well-presented, sensibly priced freehold homes are attracting strong interest and continue to sell quickly and competitively, effectively operating within their own micro-climate.’