**UK House Prices Dip Unexpectedly in June as Sellers Urged to Be Pragmatic**
The UK property market has registered an uncommon fall in asking prices in June, with estate agents and analysts urging home sellers to temper their expectations in the current climate. According to research by Rightmove, the average price for a home listed for sale on the market slid by £1,277, corresponding to a 0.3% decrease in comparison to May, settling at £378,240.
This downturn breaks from the traditional June pattern, which typically sees price rises. Over the last ten years, property prices in June have, on average, increased by 0.4%. The slip reflects a unique set of market pressures, after record-high price tags were established in April and May. Analysts point to adjustments in stamp duty that took effect in April, alongside an increased supply of homes, as major contributing factors.
Stamp duty, which applies to property transactions in England and Northern Ireland, has seen some significant changes recently, with certain buyers facing higher costs since April. This appears to have dampened enthusiasm in parts of the market, prompting some sellers—particularly in southern England—to lower their asking prices in response to changing buyer affordability and adjusted expectations.
Another noteworthy trend highlighted by Rightmove is the growing level of choice for buyers. Current conditions offer a decade-high number of homes for sale, providing would-be purchasers with considerable negotiating power. As a result, estate agents report that sellers who set ambitious prices are finding it increasingly challenging to secure a sale, while those who adopt a more realistic approach are seeing better results.
Colleen Babcock, a property expert at Rightmove, commented, “We’re witnessing sellers respond to market realities. If a property is sensibly priced from the outset, it’s much more likely to attract serious early interest.” She stressed that tailored marketing and accurate valuation are now essential, with strong regional variations emerging depending on local supply and buyer affordability.
Despite the price drop, the underlying sales activity remains robust. May registered the busiest number of completed sales since March 2022, indicating that astute sellers and buyers are coming to agreements at a pace. Babcock added, “With so many homes on the market, buyers are in a strong position. Sellers may accept a slightly lower offer on their own property, but equally, they can try to negotiate a discount on their next purchase.”
Industry figures echo these sentiments elsewhere in the country. Josephine Ashby, managing partner at John Bray Estates in Rock, Cornwall, credits a combination of attractive listings and the region’s natural appeal for recent positive trends in prime locations, particularly at the higher end of the market. She notes that the compelling combination of lower guide prices and high-quality homes is giving confidence to buyers who may have previously sat on the sidelines.
While the sales market adapts to new realities, the rental market is also experiencing a period of adjustment. Separate data from Hamptons, another property group, reveal that demand for rental homes has cooled, with 17% fewer potential tenants registering at lettings agencies in May 2025 compared to the previous year. This decrease coincides with more tenants transitioning into homeownership and a slowdown in rental price growth.
Average rents for new lettings have risen by only 1.5% in the year to May, reaching £1,366 per month—a significant slowdown after annualised growth rates of 5.1% the prior year. Aneisha Beveridge, head of research at Hamptons, explained that the moderation in rent increases mirrors post-recession patterns from previous years, and is partially driven by falling interest rates giving landlords more financial flexibility.
Beveridge points out that the rental market appears to be finding a new equilibrium: “It’s taken nearly two years for rental growth to fall in line with historical averages. Though further slowdowns are not expected, for now we’re unlikely to see another surge in rents.”
These shifts in both the sales and rental sectors suggest that a period of recalibration is underway. Sellers hoping for quick sales must heed advice on realistic pricing, while tenants and prospective buyers alike may benefit from the greater choice now available in the market. The coming months will likely test whether this trend towards increased pragmatism continues to shape the UK housing market.