The average asking price for a property fell in June, dipping by 0.6% (equivalent to £2,113), as historically high stock and low buyer demand have kept them on ice.
It marks the largest fall recorded in June for 14 years, and may be a result of the May heatwave distracting buyers from house-hunting, according to the latest house price index from Rightmove.
The dip means the average asking price for a property in the UK is now £376,191, around 0.5% lower than this time last year.
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While summer tends to be a slower season for the housing market, this June has been particularly difficult for prices, which typically rise modestly in the month.
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The recent slowdown may be a result of the high level of competition and low demand in the market, according to Rightmove.
Housing stock is still at a historic high, and sellers are responding to this by cutting asking prices more fiercely in an attempt to make their homes more attractive to buyers.
Buyer demand was down 10% year-on-year in May. One reason for this larger-than-normal dip in demand could be higher mortgage rates.
Rates have been high since the beginning of the Iran war on 28 February, the effects of which are expected to weigh heavily on the UK economy.
Inflation in particular is expected to rise, it’s unlikely the Bank of England will cut interest rates in 2026. That, in turn, means mortgage rates are set to stay high for the foreseeable future.
Rightmove adds that slumping demand may be worse this year as heatwaves and the World Cup are set to distract buyers for the next few months.
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.”
While asking prices have dipped, sales activity has remained relatively steady. Though Rightmove’s data shows sales are down 6% year-on-year, 2026’s numbers are broadly in line with those from recent years (about the same as 2024 and 5% more than 2023).
Babcock added: “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.
“Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price.”
Asking prices grew in Scotland and London
While almost all regions in the UK saw average asking prices fall, Scotland and London actually saw them rise in June.
The average asking price for a house in Scotland is up 0.8% in June, bringing it to £207,011. Sales in the country are also the fastest in the UK, with the average seller only having to wait 31 days to find a buyer. Overall, asking prices are up by 3.3% on the year.
Asking prices in London have been falling recently, but June’s data has bucked the trend. The average home in the capital is now 0.3% more expensive, with average asking prices coming in at £687,080.
Despite the June bump, asking prices for homes in the capital are still lower today than they were a year ago, slumping by 1.2%.
The poorest-performing region in the UK for asking price growth in June was Wales. The average asking price for a house in the country is now £271,459, down 1.6% this month and 0.3% on the year.
