Average asking prices fell by 0.6% in June, marking the largest monthly decline for the time of year since 2012, as sellers adjusted pricing expectations amid high levels of competition and more cautious buyer demand.

According to Rightmove, the average price of a newly listed property dropped by £2,113 during the month to £376,191, leaving asking prices 0.5% lower than a year ago. June typically records modest price growth, averaging a 0.1% increase over the past decade.

The portal said an unusually high number of homes for sale is continuing to put downward pressure on prices, with sellers competing for buyers in a market where choice remains plentiful. It warned that over a third of newly listed homes fail to find a buyer, increasing the importance of realistic pricing from the outset.

The slowdown has been most evident across southern England and Wales, where asking prices have generally fallen, while more affordable markets in the North East and Scotland have proved more resilient.

Despite softer pricing, sales activity remains relatively stable. Buyer demand in May was 10% lower than a year earlier but broadly in line with activity levels seen throughout 2026. The number of sales agreed was down 6% year-on-year, although transactions remain comparable with 2024 levels and ahead of 2023.

New listings were 5% lower than a year ago, suggesting the market may be moving into its traditional summer slowdown earlier than usual. However, stock levels remain elevated, with the number of homes available for sale still 6% higher than in 2024 and 12% above 2023 levels.

Mortgage affordability has improved slightly in recent weeks. Rightmove’s mortgage tracker shows the average two-year fixed rate has fallen from 5.18% to 5.07% over the past month, reducing average monthly mortgage repayments by around £30.

Colleen Babcock, head of partner marketing at Rightmove, said: “While the summer market has come a bit early this year, overall activity is still within a typical historic range. What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions.

“Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price. It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment.

“While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”