Rightmove: The largest decline in June prices in 14 years

Due to buyer distraction from the May heatwave, the average asking price for a home dropped by 06 percent in June, the largest decline in the month in 14 years

Due to historically high stock and low buyer demand, the average asking price for a property dropped in June by 0.6 percent, or 2,113.

According to Rightmove's most recent house price index, it represents the biggest decline in June in 14 years and could be the consequence of buyers being diverted from looking for a home by the May heatwave.

Due to the decline, the average asking price for a property in the UK is currently 376,191, which is approximately 0.5% less than it was at this time last year.

Although the housing market usually slows down during the summer, June has been especially challenging for prices, which normally increase slightly during this month.

Watch the entire video here: Rightmove suggests that the market's low demand and intense competition may be the cause of the recent slowdown.

Sellers are responding to the fact that the housing stock is still at an all-time high by aggressively lowering their asking prices in an effort to attract more buyers.

In May, buyer demand decreased 10% from the previous year. Higher mortgage rates may be one factor contributing to this greater than usual decline in demand.

Since the start of the Iran war on February 28, rates have been high, which is predicted to have a significant impact on the UK economy.

The Bank of England is unlikely to lower interest rates in 2026 because inflation in particular is predicted to increase. This implies that mortgage rates will continue to be high for the foreseeable future.

Rightmove adds that since heatwaves and the World Cup are expected to divert consumers for the coming months, declining demand could be worse this year.

Rightmove property expert Colleen Babcock stated: "We would typically anticipate modest price growth at this point in the year, so it's unusual to see a price fall of this size in June."

This time around, there are a number of factors that seem to be accelerating the typically slower summer market, such as the timing of the May bank holiday, the unusual heatwave, and broader economic uncertainty."

Asking prices have decreased, but sales activity hasn't changed much. Sales in 2026 are roughly in line with those from previous years (about the same as 2024 and 5 percent more than 2023), despite Rightmoves data indicating a 6 percent year-over-year decline.

"Although the summer market has arrived a little earlier this year, overall activity is still within a typical historic range," Babcock continued. Some buyer behavior has changed; with more properties to pick from and higher borrowing costs, buyers are considering their options more carefully and taking longer to make a decision.

"Sales activity is still steady, but buyers are searching for the right property at the right price in this highly price-sensitive market."

In Scotland and London, asking prices increased.

In June, average asking prices decreased in nearly every part of the UK, but they actually increased in Scotland and London.

In June, the average asking price for a house in Scotland increased by 0.8 percent to 207,011. The average seller in the nation only needs to wait 31 days to find a buyer, making sales the fastest in the UK. In general, asking prices have increased by 3.3% over the past year.

London asking prices have been declining lately, but data from June has shown that this is not the case. With an average asking price of 687,080, the average home in the capital is now 0.3 percent more expensive.

Asking prices for homes in the capital are still down 1.2 percent from a year ago, despite the June uptick.

Wales was the UK's worst-performing region for asking price growth in June. The nation's average asking price for a home is currently 271,459, down 1.6 percent this month and 0.3 percent over the previous year.