Key takeaways from June’s House Price Index:
- The average asking price of a home has dipped by 0.3% this month, to £378,240
- This unusual trend for June – when prices typically rise – is on account of the decade-high number of homes for sale
- Higher-priced areas in the South and London have seen the biggest price drops, while more affordable northern regions have recorded price growth
- Buyer demand remains strong, with the highest number of sales agreed in a single month since March 2022
After recording record-breaking house prices in April and May, average asking prices have fallen by 0.3% in June (-£1,277). It’s not something we usually see at this time of year —in fact, prices have typically risen by an average of 0.4% at this time of year over the past decade. So what’s going on?
Well, there’s now more choice for buyers than there has been over the past 10 years, which means sellers are having to price more competitively to stand out. At the same time, changes to stamp duty in England, introduced in April, are having a delayed impact—particularly in higher-priced areas where the tax rise is adding the most to the cost of moving for home-movers. You can check our stamp duty calculator to work out how much stamp duty you might pay.
Our property expert, Colleen Babcock, says: “Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message. Underneath the headline figures, we can see regional variations in price changes this month, which appear closely linked to buyer affordability and supply levels.”
So while price drops in June may feel surprising, they’re actually a sign that sellers are tuning into what’s needed to get a sale agreed. In fact, last month saw the highest number of homes sold in a single month since March 2022, suggesting that this more competitive pricing is working.
What’s happening across Great Britain?
The biggest price drops have come in the South West, South East, and London—areas where buyers are more likely to be impacted by the recent stamp duty changes, and where the number of available homes for sale has risen most. This increased supply is pushing sellers to lower their asking prices to stay competitive.
In contrast, prices have gone up in the North West, Wales, and Yorkshire & the Humber, which have lower average house prices, and less affected by the stamp duty changes overall. There’s also been a smaller increase in the number of homes for sale in these regions compared to the South.
Colleen adds: “It’s an encouraging market for those looking to buy, with a very good choice of homes for sale, which also means they have good negotiating power. Some buyers with a home to sell in the current high-supply market may achieve a lower price on their own sale, but could look to offset that by negotiating a comparable discount on their purchase. The fact that sales are being agreed not only at a good level, but at the strongest level since March 2022, is a really positive sign that many are getting their sales tactics right.”
Is now a good time to move?
If you’re a buyer, the current market gives you more negotiating power than you’ve had in years. And if you’re selling, it’s all about standing out—whether that’s through setting an asking price that appeals to buyers, or presenting your home in its best light. Our data shows that homes that get an enquiry on the first day they’re listed are 22% more likely to find a buyer than those that don’t get interest in the first two weeks.
Take a look these 7 mistakes to avoid when selling a home.
What do the local experts think?
Josephine Ashby, Managing Partner of John Bray Estates in Rock, Cornwall, says: “Serious sellers are more focused than ever, reducing or listing property at much more attractive asking prices. Buyers have more choice than ever, so the combination of a rare abundance of high-quality properties at much reduced guide prices in the prime coastal areas, is resulting in the tide finally turning in a positive way.”
Thinking of making a move soon?
Whether you’re just starting to consider a move, or already browsing properties, we’ve got tools to help you whatever stage you’re at. From kick-starting your search, through to working out your budget, moving in, and beyond.
