By Anthony O. Goriainoff
New seller asking prices for homes in the U.K. fell in June as sellers lowered their price expectations amid a decade-high competition to secure buyers, according to Rightmove.
The property website said new seller asking prices fell 0.3% to 378,240 pounds, equivalent to around $513,888, prompting Rightmove to call the dip "unusual."
Although the drop in price compares to an average increase in June of 0.4% over the past 10 years, it follows April and May's stronger-than-expected price growth and seems to partly be a delayed response to the increased stamp duty tax in England.
Rightmove said that more competitive pricing is helping sales activity, with May being the strongest month of sales agreed since March 2022, adding that buyer demand is 3% ahead of the same time last year. The number of homes coming to the market is 11% higher, it said.
"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," John Bray Estates managing partner Josephine Ashby says in a note.
According to Rightmove, the larger price drops took place in London and the higher-priced southern regions, as they were more affected by higher stamp duty charges and saw a greater increase of homes available for sale.
The quickest price rises took place in the more affordable North West, Wales, Yorkshire & The Humber, with the overall average asking price still 0.8% higher than this time last year, Rightmove 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," Rightmove property expert Colleen Babcock says.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
June 16, 2025 00:30 ET (04:30 GMT)
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