New seller asking prices fell by 0.3% or £1,277 in June to £378,240, according to the latest Rightmove House Price Index (HPI).
Higher-priced areas in the South and London saw the largest price drops, which was linked to recent Stamp Duty increases and more homes coming to market.
In contrast, prices in the North West, Wales and Yorkshire & The Humber rose the fastest this month.
The national average asking price was still 0.8% above the same time last year.
Buyer activity stayed strong, with May recording the highest number of sales agreed since
March 2022 and 6% more than the same period last year.
Buyer demand was up by 3% compared to June 2024, while new homes coming up for sale increased by 11%.
Rightmove’s figures also showed that homes getting an enquiry on the first day of marketing were 22% more likely to find a buyer than those taking over two weeks to get their first enquiry.
First-time buyers (FTBs) saw an average asking price of £228,780, down 0.4% month-on-month.
Second-steppers were at £348,290, down 0.1%.
Properties at the top of the ladder averaged £698,503, down 0.8%.
Colleen Babcock, property expert at Rightmove, said: “It appears that we’re now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers’ pricing.
“Prices have fallen this month after the new records set in April and May.
“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.”
Babcock added: “Such realistic pricing will remain key in the coming months. Underneath the headline figures, we can see regional variations in price changes this month, which appear closely linked to buyer affordability and supply levels.
“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.”
She said: “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.
“Rightmove’s analysis shows that homes which are marketed as effectively as possible and priced right at the start of marketing will get the all-important early interest that vastly increases the likelihood of finding a buyer.”
REACTION:
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“The amount of unsold stock is rising and transaction numbers are falling.
“However, the overwhelming majority of agreed sales are holding, although some prices are softening. We are telling sellers who are also buyers, but receiving little or no interest in their properties, to concentrate on the difference between the two and reduce closer to their bottom line while still leaving room for negotiation.
“New sellers, particularly of flats, need to recognise quickly the buyers’ market conditions and price to stand out from the crowd.”
Tomer Aboody, director of specialist lender MT Finance:
“Sellers are more motivated to sell as buyers take advantage of lower mortgage rates. With the economy potentially taking a negative turn, sellers are realising that if they are serious about selling, they need to be open to offers or price correctly in the first instance.
“Increases to stamp duty have had a negative impact on the higher end of the market which has seen a slowdown. Buyers are eagerly waiting to see whether further rate cuts will come, which will lessen the impact of potentially higher stamp duty costs.”
Toby Leek, president of NAEA Propertymark:
“This modest dip is welcome but is more than likely due as a result of the backlash in the increase in Stamp Duty across England and Northern Ireland.
“A considerable number of first-time buyers will see this dip in house prices balanced out by the tax increase.
“Moving forward, many homebuyers will need additional support in order to enter onto the property ladder considering first time buyers need around a £60,000 deposit to buy a home.”
