House prices across Britain have recorded an unusual dip in June - a month which is often known for increases each year for the past decade.
The drop of £1,277 or 0.3 per cent to an average of £378,240, according to property website Rightmove, is unique when compared to typical June patterns, which have seen average increases of 0.4 per cent over the previous 10 years.
The decline comes after record-breaking price highs in April and May. But, this month, Rightmove has suggested the unexpected decrease is a delayed reaction to increased stamp duty costs introduced in April for some buyers in England and Northern Ireland.
The property market is also experiencing a decade-high level of buyer choice, creating additional downward pressure on prices.
May witnessed the strongest month of sales agreed since March 2022
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Despite the price reduction, May witnessed the strongest month of sales agreed since March 2022, indicating that more competitive pricing is helping to drive market activity.
Buyers in southern England have been particularly affected by the stamp duty changes, with some sellers adjusting prices downward to compensate. The property website noted that different market segments are performing variably, influenced by buyer affordability and supply levels.
Rightmove property expert Colleen Babcock said: "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."
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With more new sellers entering the market than new buyers, realistic pricing has become essential for successful sales. The current conditions favour buyers, who enjoy extensive property choice and strong negotiating power.
Babcock added: "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."
For sellers with properties to sell, Babcock suggested they might achieve lower prices but could "look to offset that by negotiating a comparable discount on their purchase."
With more new sellers entering the market than new buyers, realistic pricing has become essential for successful sales
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Rightmove's analysis indicates that properties marketed effectively and priced correctly from the start receive crucial early interest, significantly boosting the likelihood of finding a buyer in the current high-supply market.
The strong sales activity has been particularly evident in prime coastal areas with the managing partner of John Bray Estates Josephine Ashby commenting in Cornwall: "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."
She added that sunny weather and Cornwall "looking at its very best" inevitably helps, saying: "The established and prime locations are still winning, especially at the top end of the market, giving buyers the confidence to purchase in those areas."
She added that it was "a really positive sign that many are getting their sales tactics right".
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