16th Jun 2025 09:15
(Alliance News) - UK house prices have slipped this month, as sellers turn to "realistic pricing" to sell homes, property portal Rightmove said on Monday.
The 0.3% decline on-month, an "unusual dip" for June, comes after recent UK stamp duty increases.
From the end of March, the temporary increase in the zero-rate stamp duty thresholds ended. For first-time buyers of a home under GBP500,000, the zero-rate band fell to GBP300,000 from GBP425,000 previously. For other home buyers, the threshold reduced to GBP125,000 from GBP250,000. The measures were announced by UK Chancellor Rachel Reeves in the October autumn budget.
"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. Such realistic pricing will remain key in the coming months," Rightmove analyst Colleen Babcock commented.
In May, prices rose 0.6% from April. June's drop was a departure from what often happens this month. Over the past 10 years, house prices have risen by 0.4% on average during the month of June, Rightmove noted.
"However, it follows stronger than expected price growth in April and May and appears to be in part a delayed response to increased stamp duty tax in England from April. The continued decade-high level of buyer choice is also continuing to put downwards pressure on prices."
Year-on-year, house price growth slowed to 0.8% in June from 1.2% in May.
Rightmove said: "Buyer activity remains resilient, with affordability improving for some. Average wages are rising faster than house prices, and many lenders are loosening their affordability criteria. May was the strongest month for the number of sales being agreed since March 2022, and 6% ahead of the same month last year. This suggests that despite the high volume of homes for sale, properties that are priced right and presented well are continuing to attract serious buyers.
"With buyer choice so high, the market is very price sensitive, especially with some mortgage rates slightly rising over the last few weeks."
Rightmove's weekly mortgage tracker showed the current average five-year fixed interest rate is 4.61%, down around 40 basis points from the prior year's 5.04%. The Bank of England's base rate currently sits at 4.25%. This time last year, it was at 5.25%. The BoE announces a rate decision on Thursday. It is expected to maintain the benchmark rate.
By Eric Cunha, Alliance News news editor
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