House prices tumble - is now the best time to get a property discount?

Homebuyers are finally gaining the upper hand in the UK property market, with the average asking price of homes falling by £2,113. This marks the largest June house price drop in 14 years, signalling a shift in favour of buyers, according to Rightmove.

House prices are now 0.5% lower year-on-year, although the average property still costs an eye-watering £376,191.

Why are UK house prices falling?

The housing market typically slows during summer as buyers are distracted by holidays, sporting events and warmer weather.

However, this year’s slowdown has been brought forward thanks to more properties on the market, higher competition among sellers and economic uncertainty.

Rightmove data shows the number of new listings is up 12% compared to 2023, giving buyers more choice than usual for this time of year.

Colleen Babcock, property expert at Rightmove said: “It’s unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year.

“What’s different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market.”

Is now a good time to buy a house?

If you’re looking for a home to buy, you may now be able to drive a harder deal than you could have in previous years.

Buyers have more choice with the number of homes for sale at historically high levels for this time of year.

The property site said the fall in house prices suggests that many new sellers are adjusting their price expectations in response to high levels of competition and more price-sensitive buyers.

More than a third of new listings that come to market not going on to sell.

And sales agreed are down 6% year-on-year showing that many buyers could be holding back.

Despite the annual fall in sales, numbers are broadly in line with recent years - virtually level with 2024 and around 5% above 2023​.

Mortgage rates are falling: What does it mean for buyers?

Another advantage for buyers is improving mortgage affordability. The average two-year fixed mortgage rate has fallen to 5.07%, down from 5.18% last month, according to Rightmove.

Lower rates can increase borrowing power and reduce monthly payments

The direction of mortgage rates is influenced by the outlook for the Bank of England base rate which moves based on the outlook for the economy and inflation among other factors.

It is expected the Bank’s Monetary Policy Committee (MPC) will hold rates at 3.75% in June when the decision is announced later this week.

Matt Smith, Rightmove's mortgage expert said: “It’s encouraging to see mortgage rates edging down slightly, and even relatively small reductions can make a difference to buyers’ budgets.

“While rates remain higher than the lows of recent years, they have been relatively stable over a sustained period, which is helping to provide more certainty for those planning a move.”

Is it a bad time to sell a property?

There are still plenty of home hunters but you may have to put in more effort to make the sale than in previous years, as sellers face a more competitive market.

Trying to time the market is tricky, and it’s usually better to act based on your personal circumstances rather than trying to second guess movements in price.   

Small tweaks to your home can make a big difference in attracting potential buyers, such as clearing up clutter and giving the property a fresh lick of paint.

More important is setting a realistic price.

Colleen Babcock from Rightmove said: “In this kind of market, sellers need to work harder to attract attention.

“Setting a competitive asking price from the outset is key, as buyers are taking more time to compare options and are quick to move on if a home doesn’t stand out on value.

“When sellers are over-optimistic on price and find they need to reduce later to sell, it can be harder to regain momentum, which underlines just how important it is to get the pricing right from day one.”

The outlook for the UK housing market in 2026

National price trends skim over regional differences and movements in prices depend on whereabouts you are in the country.

Prices are coming down across all southern England regions and Wales.

But they are holding up better in northern areas and Scotland, Rightmove data suggests.

The global outlook for inflation and conflict in the Middle East is set to raise the cost of living this year which could squeeze buyer affordability and bring down prices further.

The wider choice of homes for sale is encouraging buyers to take a less urgent approach unless a property really stands out on its price or presentation.

However, sales activity remains steady overall, with the number of sales agreed down 6% year-on-year, but broadly in line with recent years, virtually the same as 2024 and 5% above 2023.