The June heatwave saw demand fall by 10%, according to Rightmove’s real-time housing market data.
As well as half-term heat causing a temporary reduction in home-mover activity levels, the property portal’s house price index has revealed that June saw the biggest house price fall in 14 years, down 0.6% to an average price of £376,191.
The number of newly listed homes coming to market was down 5% compared with this time last year. However, the figure is 6% up on 2024 and 12% up on 2023.
Sales activity remains steady overall; down 6% year-on-year but virtually level with 2024 and around 5% above 2023.
“While the summer market has come a bit early this year, overall activity is still within a typical historic range”, Colleeen Babcock, property expert at Rightmove, said.
“What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions. Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price. It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment.
“While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”
According to Henry Crane, partner at Birmingham-based James Laurence Estate Agents, there is a clear split in the market.
“Leasehold properties, particularly those with service charge increases or lease issues, are seeing softer demand and less urgency from buyers,” he said.
“In contrast, the freehold market is moving at a quicker pace. Well-presented, sensibly priced freehold homes are attracting strong interest and continue to sell quickly and competitively, effectively operating within their own micro-climate.
“Overall, while demand remains, it is highly price-sensitive and selective, with the best-positioned homes continuing to perform strongly.”
Nathan Emerson, CEO of Propertymark, said: “The latest figures suggest the market is continuing to find a more sustainable balance, rather than experiencing a loss of confidence
“Buyers remain active but are taking more time to make decisions, meaning realistically priced homes continue to attract strong interest.
“National trends also mask significant regional differences, with local affordability, supply levels and demand continuing to shape market performance. In many areas, particularly where stock remains constrained, well-presented and competitively priced properties are still selling well.
“This reinforces the importance of professional advice. Accurate pricing and a strong understanding of local market conditions are helping buyers and sellers navigate a more competitive marketplace.
“While further improvements in mortgage affordability would support confidence, the overall level of transactions shows there remains a solid appetite to move despite ongoing economic pressures and seasonal distractions.”
