Rightmove’s latest House Price Index shows a 3% increase in buyer demand compared to this time last year, along with a decade-high level of homes for sale.
Data from the largest monthly sample of housing market activity reveals a ‘resilient’ buyer picture, with the highest number of sales agreed since March 2022 – 6% higher than the same time in 2024.
The number of new homes coming to market is 11% higher than this time last year, leading to the highest level of choice for buyers since 2014. The increase in the number of options for buyers is putting downwards pressure on prices, the report notes, resulting in an unusual dip in prices for June: the average cost fell by 0.3%, bucking the trend of the 0.4% increase seen every June for the last 10 years.
The ‘resilient’ buyer activity is thanks to improvements in affordability, Rightmove suggests, with average wages rising faster than house prices in some areas and many lenders relaxing affordability criteria.
Colleen Babcock, property expert at Rightmove, said the figures reflect ‘an encouraging market’ for potential buyers. She added:
“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. Underneath the headline figures, we can see regional variations in price changes this month, which appear closely linked to buyer affordability and supply levels.”
The largest price drops were found in the South West, South East and London regions, which have also seen the largest increase in the number of available homes for sale compared to last year. Prices rose the most in the North West, Wales and Yorkshire & The Humber, which Rightmove attributes to the regions being less affected by stamp duty changes or, in the case of Wales, not affected at all.
Toby Leek, president of Propertymark, welcomed the news – but said first time buyers still need to find a significant downpayment:
“Moving forward, many homebuyers will need additional support in order to enter onto the property ladder considering first time buyers need around a £60,000 deposit to buy a home.”
According to Nick Jones, mortgage sales and marketing director of Access Financial Services, some of that support can be found in the form of several low-deposit mortgage products currently available. He commented:
“High LTV mortgages, including 97%, 99% and even 100% LTV options, have seen a resurgence recently. Lenders such as April Mortgages, Vida Homeloans, Gable Mortgages, Halifax and Accord Mortgages are offering innovative solutions that balance risk and opportunity, products designed for tenants who demonstrate financial responsibility but who struggle to save a substantial deposit amid rising rents and living costs.
“These high LTV mortgages could offer hope to responsible, mortgage-ready FTBs – hindered only by the deposit barrier – enabling them to capitalise on a temporary dip in June prices as new sellers adjust their expectations.”
