June Property Market Analysis

Summer a quiet time in the property sector? Nonsense. June was packed full of updates, insights, and an outline of what buying and selling will look like in the future.

Firstly, let’s look at prices, demand and rental values. Rightmove’s latest House Price Index revealed the seasonal slowdown has begun. Soaring temperatures, more homes available at this time of year than ever before and sporting distractions were cited as reasons why the UK’s average asking price fell. 

Signs of stability

Sellers asked £2,113 less in June when compared to May, with a new average asking price of £376,191. Higher mortgage rates were said to be behind a 10% drop in buyer demand but with rates easing at the end of June, we expect this figure to reverse. Positively, sales agreed are keeping in touch with average levels.

Annual house prices increased

Last month saw Zoopla release its complete guide to UK property prices. The headline? The average house price was £271,900, up 1.5% in 12 months. The portal’s data also revealed granular trends.

Semi-detached homes have increased the most in value over the last year, rising +2.5% to a UK average of £281,800. The North East recorded the second biggest annual house price increase at +3.4% but it remains the most affordable region for buyers, with an average house price of £151,100.

Zoopla also issued its latest rental Index in June. The UK average for newly agreed lets has increased +2.1% in the past year. New tenants are now paying an average of £1,321 per month.

And now to politics. Rumours of buying and selling reform were confirmed last month. Consultations, new legislation and implementation will happen between the end of 2026 and July 2029. So what can home movers in England and Wales expect?

The defunct Home Information Pack (HIP) is being reincarnated as the sales pack. This will become mandatory before a property is listed, and will contain much of the information that’s currently gathered by a solicitor after an offer is accepted. Sellers, together with their solicitors, should expect to prepare deed documents, verified seller ID, building safety information, standard search results and a property condition assessment upfront.

Binding agreements for future buyers 

The biggest change for buyers will be binding agreements. Signing one of these will legally commit a buyer to a purchase early in the process, limiting the number of people who delay sales by simply changing their minds. There will be exemption clauses but also fines for buyers who breach their binding agreement.

The proposals also include consulting on whether agents will need a compulsory qualification and training to practice, as well as greater digitalisation of the transaction process. With all reforms taken into account, the Government hopes to reduce transaction times by four weeks and save a typical first-time buyer around £650.

Moving frustrations revealed

The Government’s announcement is welcome news after reading The Future of Homebuying – a report published in June by Open Property Data Association. Its survey of 5,001 adults who had bought or sold a residential property within the past five years revealed current sentiment. Of those questioned, 86% believe using a digital property pack is a good idea.

The survey also revealed 30% found the time it took to exchange contracts the most challenging aspect of buying a home, with movers in East Anglia the most stressed. There was also frustration around providing details, with 66% saying they were asked to provide the same information 2-3 times. Frustratingly, almost 1 in 5 said they were asked to provide the same information 4-5 times.

If you would like to know more about your local property market, please get in touch.