UK House Prices Log Biggest June Fall In 14 Years: Rightmove

(RTTNews) - UK house prices posted their worst June performance in 14 years as competition to attract buyers remained fierce among sellers, the property website Rightmove said Monday.

Average property prices declined 0.6 percent from May, which was the biggest June fall in fourteen years. This followed a 1.2 percent rise in May.

On a yearly basis, house prices dropped 0.5 percent after a 0.3 percent decrease in May.

Summer is slower than the spring as more buyers are distracted by sporting events, holidays and better weather, Rightmove noted. Meanwhile, the number of homes for sale remained at historically high levels for this time of year.

Further, Rightmove observed that the World Cup may prove to be a distraction for home-movers. Meanwhile, ongoing economic challenges and global uncertainty remain.

"It's unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year," Colleen Babcock, property expert at Rightmove said.

"What's different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market," added Babcock.

Despite headwinds, sales activity remained steady with the number of sales agreed falling 6 percent from a year ago.

Babcock said it is 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," said Babcock.

Although rates remain elevated, even modest changes can make a difference to buyers' budgets and confidence, Babcock noted.