Average asking prices have fallen by 0.6% this June, the largest drop for the month in 14 years, as sellers compete for summer buyers.
The average asking price for newly listed homes has fallen by 0.6% (£2,113) this month to £376,191, the biggest June drop in 14 years, as sellers compete to attract buyers over the summer.
Prices are now 0.5% below where they stood a year ago. While June typically brings modest price increases, averaging 0.1% over the past decade, this month's fall suggests many sellers are adjusting their expectations in response to high competition and more price-sensitive buyers.
Summer tends to be slower than spring, with buyers distracted by sporting events, holidays and better weather, meaning sellers often need to offer a more attractive price to stand out.
However, the national trend doesn't tell the whole story, as regional and local markets vary considerably depending on affordability pressures. Asking prices have fallen across all southern England regions and in Wales, while more affordable areas such as the north east and Scotland are holding up better compared with this time last year.
The number of homes for sale remains unusually high for this time of year, and that level of competition is contributing to the price falls as sellers compete for attention. In a market where choice is high and buyers can afford to be selective, getting the price right from the outset matters more than ever, with over a third of new listings failing to sell.
"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," said Colleen Babcock, property expert at Rightmove.
"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."
She added that sellers need to work harder to attract attention in the current climate. "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," she said.
"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."
