Property prices fall amid rising supply

The average asking price for London homes has dropped in June, as the capital experiences one of the steepest regional declines in Rightmove’s latest House Price Index. Across the UK, new seller asking prices fell by 0.3% this month to £378,240 - a rare dip for a month which traditionally sees modest price growth.

London’s higher average property values and increased exposure to April’s stamp duty changes appear to be driving this decline. According to Rightmove, the capital - along with the South East and South West - has seen both the largest monthly price falls and the biggest year-on-year surge in available homes for sale. This growing supply is intensifying competition and putting downward pressure on prices, particularly in higher-priced markets.

The broader housing market continues to show resilience. Despite more sellers entering the market - up 11% compared to last year - buyer demand remains strong, tracking 3% above 2024 levels. May marked the busiest month for sales agreed since March 2022, indicating that competitively priced and well-presented properties are still attracting serious interest.

Rightmove notes that the market is increasingly price-sensitive. Homes that generate enquiries on the first day of listing are 22% more likely to secure a buyer. For London sellers, this means realistic pricing and standout presentation are crucial to securing sales in a crowded market.

While affordability remains a challenge for many, rising wages and some easing in mortgage lending criteria are offering hope for buyers - especially as the capital sees a surge in stock and improved negotiating power. Still, sellers must be prepared to adapt to shifting buyer expectations in one of the UK’s most competitive property landscapes.

This article is based on publicly available data from Rightmove's June 2025 House Price Index.