The latest data shows that London is the biggest regional driver of new seller asking price falls this month, with a decline of 1.5%, led by inner London with a 2.1% decrease.

It also found that the number of sales being agreed is 5% higher than at this time last year while the number of potential future buyers contacting estate agents about homes for sale is 6% higher than last year.

Average new seller asking prices are 0.1% higher than they were a year ago. With lower mortgage rates and average wage rises outstripping both house prices and inflation, Rightmove says overall buyer affordability continues to improve.

Rightmove’s mortgage tracker shows that the average two-year fixed mortgage rate is 4.53%, compared with 5.34% at this time last year, a saving of nearly £150 per month on a typical new mortgage.

At the halfway point of the year, Rightmove is reducing its price forecast for 2025 from an increase of 4% to a rise of 2%, as the high level of seller competition is limiting price growth.

However, it has retained its prediction of 1.15 million transactions this year.

Rightmove property expert Colleen Babcock says: “We’re seeing an interesting dynamic between pricing and activity levels right now. The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.”

“What’s most important to remember in this market is that the price is key to selling. The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area.”

“It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.”

“It’s been a promising first half of the year for activity levels, particularly when you consider that some will have brought their plans forward to try to avoid added stamp duty from April. Even after the stamp duty deadline, we’re seeing more sales being agreed and more new potential buyers entering the market than at the same time last year.”

“Still, the knock-on effect of high buyer choice is slower price growth, so we’re revising down our prediction of how much the asking price of a home will increase over the whole of the year.”

“Looking ahead to the second half of 2025, there will still very likely be the usual quieter seasonal periods around the summer holidays and Christmas, but we expect market activity to continue to be resilient. Crucially, buyer affordability is heading in the right direction, and another two Bank Rate cuts before 2026 would be a big boost to this.” Together chief commercial officer Ryan Etchells comments: “A consecutive monthly fall in house prices confirms what we’ve been seeing of late: that it’s a buyers market. What may have been interpreted as a blip following the increase in stamp duty in April could be a more prolonged period of subdued activity.”

“While mortgage rates have reduced slightly in recent months, stubborn inflation and high stamp duty may well be holding back buyers, who are waiting to see what will happen to mortgage rates in the near future. All eyes will be on the next Bank of England interest rate decision next month, with many experts predicting a cut.”

“However, subdued house prices may present an excellent opportunity for aspiring homebuyers, as well as landlords looking to grow their portfolios.”

“Those keen to seize an opportunity and move forward with their property plans over the summer can consider the wide range of financial products available, like Shared Ownership mortgages or bridging loans for fast, flexible finance.”