This month saw the average price decrease by 0.6% to £376,191, leaving prices 0.5% below a year ago.

While June typically sees modest price increases, with a 0.1% average over the last 10 years, Rightmove suggests June’s decline means many new sellers are adjusting their price expectations in response to high levels of competition and more price-sensitive buyers.

Summer is typically slower than the spring, with more buyers distracted by sporting events, holidays and better weather, and therefore needing to be tempted by sellers with an attractive price.

However, the national price trend doesn’t always reflect regional and local market differences, particularly where affordability pressures vary.

Prices have fallen across all southern England regions and Wales, while the more affordable northern areas such as the North East and Scotland are holding up better compared to this time last year.

Rightmove data shows that the number of homes for sale remains at historically high levels for this time of year, driving price falls as competition to attract a buyer remains fierce among sellers.

In a market where choice is high and buyers are more selective, Rightmove notes that pricing correctly from the outset is increasingly important, with over a third of new listings that come to market not going on to sell.

May’s unusual heatwave kick-started summer earlier than usual this year, and it highlights that the World Cup could also be summer distraction for home-movers.

Data also found that buyer demand across the month of May is down 10% year-on-year but remains broadly consistent with previous data.

Meanwhile, the number of new listed homes coming to the market for sale is down by 5% compared with this time last year.

However, the number of listings remains higher than in recent years, up 6% on 2024 and 12% on 2023.

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

Mortgage affordability has improved slightly this month, with Rightmove’s daily  mortgage tracker showing that the average two-year fixed rate has fallen to 5.07%,  from 5.18% at this time last month, reducing the average monthly mortgage payment by around £30.

Rightmove property expert Colleen Babcock says: “While the summer market has come a bit early this year, overall activity is still within a typical historic range. 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.”

Also commenting on the latest data, Propertymark chief executive Nathan Emerson states: “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.”

Former Rics residential chairman Jeremy Leaf adds: “On the ground and confirmed in this data, we noticed a rebound in enquiries at the end of May/beginning of June – more than we might have otherwise expected for the time of year.

“However, we put that improvement more down to buyers coming to terms with the fallout and length of the Iran war than not feeling as much heat from the sun.

“Demand may have increased but generating commitment to purchase is proving just as tricky as it has been since hostilities began, bearing in mind the amount of choice and continuing uncertainty over the direction of travel for mortgage rates and inflation.”

Meanwhile, MT Finance director Tomer Aboody comments: “There is a lack of confidence in the housing market as buyers adopt a more cautious approach and are not prepared to pay over-the-odds, particularly when they have so much choice.”

“Affordability remains the main driving force, as buyers, especially those purchasing for the first time, find it easier to get on the ladder beyond London and the south east, particularly in the north of England, where prices are lower.”