New data from the UK property market
The average offer price of newly listed properties in the United Kingdom fell in June by 0,6% month-on-month to 376 191 GBP.
Rightmove data shows that this was the largest drop in twelve years recorded in that period.
The report indicates that although June usually sees modest price increases, averaging 0,1% over the last decade, the current decline suggests that many sellers are lowering price expectations in response to high competition and greater buyer sensitivity to price levels.
Prices in the UK property market last month were also 0,5% lower than a year ago.
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“Summer is usually a calmer period than spring, because more buyers focus on sporting events, holidays and better weather, so sellers must entice them with an attractive price,” said Colleen Babcock, Rightmove real‑estate expert.
“However, the nationwide price trend does not always reflect differences in regional and local markets, especially where affordability pressure is varied,” she added.
The agency notes that the number of properties for sale remains at a historically high level for this time of year, driving price declines.
“On a market with a large choice and more selective buyers, setting the right price from the outset becomes increasingly important, because more than one‑third of new listings that appear on the market are ultimately not sold,” the report said.
“A price drop of this scale in June is rare, because we would normally expect moderate price increases at this time of year. This time the situation is changed by a combination of several factors, including overall economic uncertainty, the May long weekend and an unusual heatwave, as well as a large number of homes on the market, which together seem to accelerate the arrival of the traditionally calmer summer market,” added the report.
Babcock noted that the above conditions lead sellers to price concessions in favour of buyers.
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Bank of England the last hope for borrowers
Related Rightmove data shows that in June mortgage availability improved in the UK property market, resulting in a drop in the average monthly mortgage payment of about 30 GBP.
“It’s encouraging that mortgage rates are falling slightly, and even relatively small cuts can matter for buyers’ budgets,” said Matt Smith, Rightmove mortgage expert.
“Although interest rates remain higher than the lowest levels of recent years, they have been at a relatively stable level for some time, giving greater certainty to those planning a move,” he added.
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Source: Trading Economics.
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Source: Rightmove.
