Following record highs in April and May, UK house prices saw their first decline in June.
Recently (June 16), major UK property portal Rightmove released its June housing market report.
The report analyzes data from the past year (June 2024-June 2025), showing overall UK price trends, regional variations, and London borough performance.
According to the report, June saw an unusual monthly price drop (-0.6%) compared to May, though year-on-year growth remained at 0.8% (June 2025 vs June 2024).
The £1,277 price decline marks a significant drop, bringing the average property price to £378,240 (approximately ¥3.7 million RMB at current exchange rates).
Rightmove notes May transaction volumes reached their highest monthly level since March 2022.
This momentum continued into June, with new sellers reducing asking prices by 0.3%, effectively stimulating buyer demand.
First-time buyers also experienced a slight price dip (-0.4%), with average purchase prices falling to £228,780.
This correction partially reflects aftereffects of April's stamp duty increase in England, following unprecedented price surges in April-May.
Price movements show regional disparities directly tied to affordability and supply levels.
Rightmove's property expert Colleen Babcock commented: "Regional volatility demonstrates layered market responses to pricing."
With more new sellers entering the market than buyers, strategic pricing remains critical for successful sales.
Let's examine key visuals from the report:
The annual asking price chart (June 2024-June 2025) clearly shows five consecutive monthly increases peaking in May, followed by June's decline.
Monthly fluctuation data reveals while tariff disputes and GBP appreciation impacted prices, the market finally corrected after five months of growth.
Lansha Tip:
These charts suggest post-growth corrections may present optimal buying opportunities.
Annual regional analysis shows growth across all areas except Southeast and Southwest England, with Northwest England leading at +3.9%. London showed zero annual growth.
Monthly regional performance saw gains in four areas, with London experiencing a -0.9% monthly decline despite stable annual figures. Average London property price stands at £695,414 (≈¥6.8 million RMB).
London Borough Performance (June 2024-June 2025):
Richmond, Wandsworth, and Harrow led annual growth at 5.7%, 3.9%, and 3.1% respectively.
Of 32 boroughs, 20 saw price increases while 12 remained flat or declined, with Merton showing the sharpest drop (-4.4%).
Notable changes include Wandsworth rising from 5th to 2nd place, and Harrow jumping from 11th to 3rd.
Reviewing London rental data (Homelet, May 2025):
Average monthly rent reached £2,088, marking a 2.3% YoY decrease.
Regarding sales cycles (one-month lag), Rightmove reports stable national selling times in May compared to April, matching 2024 levels.
Premium London properties took longer to sell, averaging 62 days (2 days longer than April).
Since January, overall sales times have trended downward.
Average inventory per agent (see chart):
Declining sales cycles combined with rising inventory levels indicate heightened market activity, as more sellers list properties through agents amid improving conditions.
Industry experts note: "Significant price reductions coupled with increased quality stock have boosted market sentiment, particularly in premium segments."
Lansha Conclusion:
While expecting continued growth, we welcome June's price correction as a potential market rebalancing from speculative to fundamental drivers.
Buyers/investors should monitor regional disparities to identify opportunities, while sellers need realistic pricing strategies to capitalize on current activity.
The market now operates in a dynamic equilibrium - both parties can succeed by aligning strategies with evolving price trends and regional variations.
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