House Price Index

House prices drop in June as sellers seek to attract summer buyers

The average price of newly-listed homes for sale has fallen by 0.6% (-£2,113) this month to £376,191. This is the biggest June price drop in fourteen years, as sellers seek to attract summer buyers, leaving prices 0.5% below a year ago.

June typically sees a small price increase, so this month’s drop suggests that many new sellers are adjusting prices in response to the record number of homes available for this time of year, and buyers being sensitive to pricing levels. Summer is typically slower than the spring, with more buyers distracted by sporting events, holidays and better weather, and therefore needing to be tempted by sellers with an attractive price.

In a market where choice is high and buyers are more selective, it’s increasingly important to price a property correctly from the start of the sales process. Over a third of new listings that come to market are not going on to sell.

However, as we saw last month, national price trends don’t always reflect regional and local market differences. Prices have fallen across all southern England regions and Wales, while the more affordable northern areas such as the North East and Scotland are holding up better compared to this time last year.

Sales activity remains steady

May’s unusual heatwave kick-started summer earlier than usual this year, and the World Cup may prove to be a summer distraction for home-movers. In addition, economic challenges and global uncertainty continue.

Demand from buyers in May was down 10% compared to last year, but is still largely in line with what we’ve seen so far this year. Higher mortgage rates are continuing to affect activity, while the wider choice of homes for sale is encouraging buyers to take a less urgent approach unless a property really stands out on its price or presentation.

Despite these challenges, sales activity remains steady overall. The number of sales agreed are down 6% compared with last year, but are broadly in line with recent years, almost the same as 2024 and 5% above 2023.

What are mortgage rates doing?

Rightmove’s daily mortgage tracker shows that the average two-year fixed rate has dropped to 5.07% from 5.18% last month. This reduces the average monthly mortgage payment by around £30.

“It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets,” explains Rightmove’s mortgages expert Matt Smith. “While rates remain higher than the lows of recent years, they have been relatively stable over a sustained period, which is helping to provide more certainty for those planning a move.

“There is still some underlying volatility in the economic and global market, which means rates could move slightly in either direction from here. However, the key takeaway for buyers is that we’re currently in a period of greater stability than we’ve seen previously, and that stability can help support confidence, particularly for those who are close to affordability limits and weighing up their next step.”

The numbers at a glance

*Data provided by specialist mortgage technology provider Podium Solutions. The data covers 95% of mortgage lending, to exclude specialist lenders.

Expert comment

Colleen Babcock, property expert at Rightmove:

“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. 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.

“It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment. While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”

Average asking price trends

Monthly average asking price trend

This graph shows the 0.6% price drop seen in June to £376,191. This is unusual, and is the biggest drop in June prices for fourteen years.

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5 year asking price trend

This data shows average asking prices in the UK over the past five years. Here you can see the usual seasonal pattern for prices, but with prices showing the summer drop a little earlier this year.

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Monthly changes in average asking prices

Here we see how much house prices have increased or decreased each month over the past year. The 0.6% drop for June 2026 reflects an unusually early dip in prices for the summer.

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Average stock per agent

Here we see the average of the number of homes per agent across the UK. The number of homes currently for sale is currently at a historic high for this time of year.

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Time to secure buyer (National)

Here we can see the monthly average number of days it takes for a seller to secure a buyer in the UK. In January 2026 this was 81 days, compared with just 60 days in May.

This average gives an idea of how active the property market is, and how accurately people are pricing their properties. For example, properties that are priced too high will usually take longer to secure a buyer.

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Regional map

UK House Price Index by region

This map shows the UK house price index by region, showing how property price trends vary considerably for different parts of the UK. Here we see that Scotland again saw the biggest house price increase in June at 0.8% higher than in May, and with homes there taking an average of just 31 days to find a buyer.

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London trends

Time to secure a buyer in London

This graph shows the monthly average number of days it takes for a seller to secure a buyer in London. This gives an idea of how active the property market is there, and also how accurately people are pricing their properties in the capital.

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Affordability trends

Average monthly amount spent on a first-time buyer home

On the graph below, the first-time buyer monthly mortgage payment is based on Bank of England data of the averages for 90% LTV two-year fixed mortgages from lenders, and the average asking price of a typical first-time buyer home (two bedrooms or fewer) using the Rightmove House Price Index. The equivalent monthly rent is calculated using the same property types (two bedrooms or fewer).

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Ability to afford a first-time buyer home

This affordability graph is based on the Average Weekly Earnings (AWE) dataset from ONS multiplied by 4.5 to get the typical maximum that a person can borrow from a lender. The average asking price of a typical first-time buyer home is taken from the Rightmove House Price Index.

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Rightmove is not authorised to provide financial advice. The information and opinions in this article are for general information purposes only and should not be relied upon when making financial decisions. You should seek advice from a regulated mortgage adviser.

Your home may be repossessed if you do not keep up repayments on your mortgage.